One day, you may not be able to work owing an accident or illness that prevents a normal life so you should really think of disability insurance as a good thing to have; this can provide an income until you are able to return to full employment. This type of situation causes additional stress so disability protection can act as a safety net whilst you are incapacitated. The chances of dying before 65 are actually lower than the possibility of needing disability protection before then!

The strange fact is that although the risk of death is lower than disability, more people organize life insurance policies than disability coverage. For example for a forty year old there is a greater chance of a disability that requires at least ninety days from work, than there is of dying before the age of sixty five. Of course, when someone is seeking disability insurance cover, it is imperative to find the best rates and plans available.

Although calculating the premium can be a complicated process, the largest factor involved is the income level the claimant requires. One method of lowering the policy premium is arranging for the plan to ‘kick in’ only after the incapacity has lasted for a set period of time. this way the claim would not be made immediately, saving the provider money. Another option to lower the monthly premiums is put a limit on how long the payments are to be made before they stop although; this can be a risky move if the period of incapacity is longer than the period arranged for payment.

insurance company policies will differ but the majority will only pay a percentage of your lost income so it is a good idea to choose the best one for you and in this instance, the cheapest may not necessarily be the best. There are two policy options available; the first is short term disability insurance which only covers the claimant for a few months of incapacity. The second plan covers extended periods and is called total disability cover; this allows a reduced payment to be made after the claimant shows he cannot carry out the work he was previously employed for.

Irrespective of the type of policy you have, payments for disability are made regularly, every week or month until the end of the incapacitation or the policy, whichever come first. Other key points to consider when looking into health policies are if there are restrictions on:

*Any previous medical problems *Will the benefit be tax free? *How long the payments are made *Whether your occupation will increase the cost of premiums

Each policy is different so the amount of salary the disability insurance plan will pay will depend entirely on the policy you decide to go with. This percentage of your income paid by your insurance plan can be as little as forty percent or as much as seventy percent, so you can see there is quite some variation. If maintaining your income is important then this issue, on its own, will determine which company you choose.

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