Learn What Disability Insurance is, Companies Offering It

We all have assets whether as business people or as our private properties, most people are familiar with the major types of insurance policies such as life insurance and health insurance, in fact, the two are the most popular insurance policies chosen by insured individuals.

Every kind of insurance policy is important and is solely aimed at reducing loss or protecting lives and/or properties, but there are specific insurance plans that directly cover exactly what an insured individual wants to cover, they narrow down the needs of the insured to avoid him\her paying huge amounts of money to buy premiums for large insurance policies when what they want to cover is minor.

For instance, someone who lives in a rented apartment, has a car he\she uses for business but has no other valuable property that deserves coverage. Such a person may ignorantly buy a property insurance plan because he has no knowledge of narrowing down his coverage to a Car owner insurance. Today we want to explain to you one of such insurance policies you may not know about or have no knowledge of their benefits and what they cover.

What is Disability Insurance?

A lot of people cover themselves from property damage resulting accidents, but there is the need to cover your own self from any physical or mental condition that limits your movements, senses, or activities. You may have bought a transport insurance plan that covers any injury you encounter in the course of your trip, or you might have acquired a health insurance plan.

Both insurance policies are only responsible for treating you and ensuring that you have recovered from the injury or illness. You are not covered if you recover from such incidence and you are disabled or handicapped.

Disability can stop a worker from carrying out or properly carrying out his/her normal duties as supposed. It’s so sad this misfortune may result to many individuals withdrawing from their source of income probably struggling to pay bills or provide for themselves and the family.

Yet some people for their own religious or superstitious reasons refuse to acquire a disability insurance policy with the “hope” that nothing will go wrong. Yet a 2021 finding estimated About 15% of the world’s population is handicapped (WHO, 2021) 

Disability insurance can simply be explained as an insurance policy that generates income for insured individuals who are unable to earn a living because they are disabled or handicapped. The premium (money paid by the insured) is paid to a Government security organization or to a private insurer. Disability insurance however, is the most expensive type of insurance provided the conditions listed below favours the insured.

Disability Insurance

Criteria Affecting Disability Insurance Premium Rates

  • The duration at which benefits are paid
  • The quantum of income to be replaced by the insured
  • The medical history of the insured; the cost of premium will be higher if the individual to be insured has experienced a medical condition before
  • The length of time the policyholders must stay before beginning to collect those benefits.
  • The individual must be disabled to an extent that they cannot work at all to earn by themselves. 

List of 15 Best Insurance Companies Offering Disability Insurance Policies.

Apart from social security policies offered by the US government, other private organizations offer travel insured plans. All the companies mentioned below offer the two major types of disability insurance i.e. short term and long term disability policies.

They include:

  • Ameritas
  • Assurity
  • Breeze
  • Guardian Life
  • Illinois Mutual
  • MassMutual
  • Mutual of Omaha
  • Northwestern mutual
  • Ohio National
  • Thrivent disability insurance
  • PIU (Petersen International Underwriters)
  • Principal Financial Group
  • The Guardian
  • The Standard
  • Unum

Types of Disability Insurance

Below are the types of disability insurance available.

Short Term Disability Insurance

This policy lasts for a short period of time, about a year. The disabled individual’s income is compensated during this time by the insurer. Short term disability policies can be used by the insured to settle financial difficulties until the arrival of a long term disability plan.

Mortgage Payment Protection Insurance

As the name implies, this policy pays off mortgage or money lent to the insured at interest in exchange for taking title of the his\her property with the condition that the conveyance of title becomes void upon the payment of the debt. Some writers include it as a type of long term disability policy 

Long Term Disability

It pays off about 60% of your salary when you deposit 3% to 4% of your monthly income to the insurer, this plan lasts long (about 10years or till the insured’s retirement) and hence provide long lasting benefits as compared to other plans 

Social Security Disability Insurance

It is owned by the US government and pays its insured members a like percentage income that they cannot rely on. Most workers prefer buying a private disability plan instead.

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