Disability insurance

Disability Insurance, often called DI or disability income insurance, or income protection, is a form of insurance that insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. For example, the worker may suffer from an inability to maintain composure in the case of psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work. It encompasses paid sick leave, short-term disability benefits (STD), and long-term disability benefits (LTD). Statistics show that in the US a disabling accident occurs, on average, once every second. In fact, nearly 18.5% of Americans are currently living with a disability, and 1 out of every 4 persons in the US workforce will suffer a disabling injury before retirement.

Factors to consider while selecting a disability insurance coverage:

• Coverage amount: Be diligent in assessing your needs and select the plan, keeping in mind your income level and age. Choose the sum assured such that you and your family could continue to maintain your current lifestyle even if a contingency arises.
• Determine the disabilities covered: While buying health insurance for disabled, there are a wide variety of options available in the market. Compare the degree of disability (total or partial) and types of disabilities covered across various products and choose the one with the widest coverage.
• Refund feature: Some products provide the functionality of refund of a part of your premium amount if no claim is made within the specified period.
• Read the policy wording: For the different degree of disability, different percentages of the sum insured is paid. In the case of partial disability, the percentage may differ depending on the policy wording. So, read the policy document carefully.

There are various government-sponsored health insurance policies for the disabled:

1. Nirmalya Health Insurance: It is a government-sponsored health insurance scheme for people with mental disabilities. This scheme provides coverage of Rs. 1 Lakh at a low premium rate with benefits including pre and post hospitalisation expenses and OPD treatment.
2. Swavalamban Health Insurance: It is a custom-tailored insurance scheme to suit the needs of those with disabilities. This plan requires the insured to pay a single premium in one go and avail the coverage at any time of treatment. This policy can be availed only for those disabled individuals with a family income of Rs. 3 Lakh and below. No pre-medical test is required. There is no exclusion of pre-existing conditions. It aims in providing affordable insurance to people with blindness, vision problem, disability related to hearing and mental disabilities.