Disability Insurance, usually sold as “Total and Permanent Disability Insurance,” is designed to relieve financial pressure in case you become permanently disabled as the result of illness or injury. It usually comes in the form of a lump sum and is used to pay for such things as living expenses, debts and medical expenses. It can also be the source of funding for a permanent lifestyle change if one is necessary.
How Does Disability Insurance Work?
Disability insurance covers you if you can’t work again due to disability. There are two different ways that most companies will insure you. The first is in case you are injured and can’t practice your own profession again, such as a musician with a debilitating hand injury. The other is if you are disabled and can’t work in any profession again, such as someone who becomes paralysed.
It is important to read the language of any policy carefully and thoroughly to make sure that you know what your coverage is.
How Much Cover Should You Have?
We know that the amount of cover you select will be largely dependent upon your ability to pay the premium, but we suggest that you make a list of all your projected expenses and get coverage for that number. Be sure to include enough benefits to pay off: your mortgage, miscellaneous household debts, cost of remodeling your home to compensate for your condition, ongoing household expenses, medical care and your children’s education.
How Much Does It Cost?
Costs will vary according to your age, gender, health, occupation and other factors. For example, around $2 a day should be enough for between $500,000 and $650,000 for many occupations.
How Do I Purchase Disability Insurance
Approved Financial Planners can provide disability insurance for you, either as part of a life insurance policy or as a standalone policy.
Talk to Approved Financial Planners
At Approved Financial Planners, we employ a holistic approach to helping you maintain or attain financial well-being. Our expert financial planners will take your entire situation into consideration and work with you to create a comprehensive plan for your financial future. We offer a plethora of financial solutions to help you maximise your future without adversely affecting your cash flow. Call (08) 6462 0888 today.