Disadvantages Of Disability Policy

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Introduction All of us are liable to the risk of disability. It can happen at any time and any age. This disability can create a problem of financial crisis as we are unable to work and doesn’t have any source of income to pay for expenses such as monthly bills and mortgage payments in order to maintain a standard living. The disability income insurance helps to protect family or an individual from financial destitution when illness or injury preventing them from earning a living. It can also help people in protecting their income and future goals to support lifestyles and safeguard the financial in the future. Disability income insurance objectives is to gives the disabled workers a substitutes of a major portion of their income lost…show more content…
There are two types of renewal options which are non-cancelable policies and guaranteed renewable policies. Non-cancelable policies gives the policyholder the rights to renew their original policy by paying the premiums on time. The insurance companies cannot change the benefits or premiums according to the policy until the age specified. Whereas, guaranteed renewable policies will automatically renew the policy regularly but the insurance companies can raise the premium rates anytime. Apart from this policies, there are other kinds of policies as well which are conditionally renewable policies and optionally renewable. There are also some policies that are renewable to age 75 with conditions that the policyholder still in the full time…show more content…
3. DISABLE PERIOD • Policyholder must follow the criteria of insurance company about long lasting the disable. • Certain insurance company mentions in clause, policyholder requisite the disable at least last until 12 months. 4. COMPLETE THE MEDICAL CERTIFICATION OF YOUR DISABILITY • Medical certificate is ought to mention the disable which can impose enough physical or mental limitations, or both, that it eliminates the claimant's ability to go back to one of their former jobs. 5. DURATION OF WORK • Policyholder with specific age must retain the job in fixed duration such as for age 95 policyholder need to work with the organizational consecutively 9 years. Waiver of Premium for Disability Insurance A situation occurs when an insured incurred the protections from insurance company after he/she injured or disable either temporarily or permanent. Each insurance company may various the definition of disable, but commonly disable is when he/she unable to work, thus no source of income. An insured or applicant is allowed to stop pay the premium because it in the clause of disability insurance. The cost of premium is difference rely on these

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