How to Protect Your Income?
One of my friends in their forties had every reason to be good job pays well, a nice family, a single family house, a garden with two cars in the garage. On Monday morning on his way to work, it was stricken by a heart attack and luckily his wife was with him in the car and took him on the field to the hospital. He underwent open heart surgery and had to stop work for four months and subsequently was able to resume its activities gradually.
Its revenues for the year have declined significantly and has the debt and sell assets to pay its bills.
Anyone is susceptible to a disease or an accident can change the course of his life.
Is there any way to prevent a similar situation?
Disability insurance can be the solution to bring against the contingency of life, but we must know the conditions and nuances of the contracts to ensure that protection is adequate.
First occupation of the insured will determine class eligibility, and of course the cost. A trucker carrying a higher risk premium and higher Then you must determine the annual income reported arising from the occupation;
In most cases the proposed coverage should not exceed 60-66% of salary. As against the provision is net of taxes. He can choose the amount proposed or reduce it to our liking and then proceed to the next step is to choose the waiting period and benefit period.
The waiting period can vary from 14, 30, 60, and 120 days is the period during which no benefit is paid after a period of compensation is the chosen time period that varies with 2, 5 or 65 during which it is eligible for disability benefits. It is obvious that the more the waiting period is long, is the least expensive premium, and while over the compensation period is longer, the premium is high
Several other factors are important as the definition of disability, the coverage of his own profession, how benefits are calculated based upon disability, the rising cost of living, the ability to increase coverage without having to undergo medical examinations.
Some companies offer rebates of premiums to maturity of the contract. This can be advantageous for the client if he can afford to pay for this option. Disability insurance is more complex and further analysis is required to fully determine the specific needs of each client.
We must especially beware of tempting offers that offer disability insurance at a very low cost. Usually they cover only disability in an accident and be sure to read the fine print and exclusions.
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