Disability Insurance Basics – Tips for Buying Coverage
There are plenty of insurances out there. Health insurance is the most talked about, one that most don't think about until it's needed is disability insurance. Studies have found that a disabling accident occurs once per second in the United States, making disability insurance a very real concern. The most common type of disability insurance is the well-known worker's compensation. Other basic forms of disability insurance may be offered by an employer, and in the cases of many small businesses an owner may insure himself with disability insurance. Here are some of the tips that you need to keep in mind if you're considering shopping for disability insurance coverage for your employees.
- Start by understanding exactly what the term 'disability' really means. Each disability insurance company will likely have a different definition of the term so it's vital that you take a close look at just what is covered as a disability by the disability insurance policy you're looking at.
- Never overlook the cost of living adjustment options when buying disability insurance. If you're disabled for several years your financial costs will likely climb regularly and adding a COLA to your plan will help ensure that your disability insurance payments rise with them.
- As a small business owner you might want to look for a business overhead option on your disability insurance policy that will help keep your business in operation while you recover from your injuries. Most disability insurance policies will offer some form of overhead policy as an option.
- Non-cancelable disability insurance policies ensure that costs and payments are locked in. If at all possible try to find disability insurance policies that include this feature in them.
- Finding an insurance agent or broker is one of the best ways to shop for any kind of insurance, disability insurance included. Unless you actually work in the disability insurance field you'll probably benefit from the presence of a trained and experienced professional who can help you with each aspect of your search. They can answer questions, make suggestions, and generally make the entire process easier. You'll end up with a policy that you're satisfied with thanks to their help.
- Don't shop just based on price. While buying a disability insurance policy that you can afford is important, it shouldn't be the only factor in deciding which disability insurance policy is right for you. You need to take all of the features of each policy into account when shopping for insurance.
- Guaranteed insurability is one of the most important aspects of buying insurance. Without it you may lose coverage in the future due to the sudden requirement of more medical exams. To be sure that you don't lose coverage due to fine print, always find a policy that offers this feature.
While these seven rules apply to a business owner looking to buy disability insurance for him or herself, they can also be applied to choosing the best insurance policy to offer your employees. While worker's compensation is an unavoidable expense, you might be able to find a disability insurance policy that provides the same or better coverage and saves you money. Unicorn HRO offers disability insurance on a pay as you go model, making it easy to get the disability insurance coverage you want.