How to Ensure Disability Does Not Handicap Your Finances?

2-August-2021 |

You work hard in your life to ensure that you earn well. You leave no stone unturned when it comes to securing your family with enough savings for a smooth future. When it comes to investing, volatile markets and falling interest rates are certain challenges you may face in choosing investment avenues for your money. A guaranteed1 return plan proves the best option for getting a steady return on your investments in such circumstances.

While taking guaranteed1 plans ensures your safety by generating steady returns. There is also a need to protect yourself from uncertainties relating to disability. Life is unpredictable, and there is a possibility that an accident or some mishap could result in your disability. This will result in you losing your capability to work anymore and cater to your family’s financial needs. Hence, you must insure yourself against uncertainties of disability by taking disability insurance cover for yourself.  

 

What is Disability Insurance?

Disability insurance helps replace your income opportunity that is lost due to an accident that results in your disability. You can choose to receive income that covers your expenses and the income opportunity that is lost due to disability stopping you from going to work. Disability insurance helps you have a dignified life as it takes care of your income to meet any financial obligations.

Many insurance companies offer a disability insurance policy in India as a separate rider# with a base life insurance policy. Certain policies also offer a standalone long term disability insurance that covers you till your old age.  

 

How do you survive financially on disability?

Taking disability insurance – be it a rider# or a standalone policy, helps you survive financially upon an accident that results in your disability. The policy gives options of receiving benefits upon any incident that may result in partial or total permanent disability. Many plans offer disability insurance in India. In these policies, benefits could be paid as follows.

 

  • In case of permanent total disability, the company pays you up to 150% of your total sum assured.

  • In case of permanent partial disability, the company pays you 100% of the total sum assured when you get disabled due to any mishap.

  • If the disability is short term, you also have the benefits of choosing a weekly or monthly payout to compensate for your loss of income due to temporary disability.

 

This way, by choosing disability insurance, you can survive financially in case you get disabled for the short term or long term due to any unfortunate incidents.

 
Is disability insurance worth taking?

While you take many investment plans that generate decent returns for yourself, these plans need regular payment of pre-determined premiums on time. In a normal course, you pay these premiums from your income. But what if you are unable to generate any income owing to disability due to an accident? Hence, disability insurance is worth every penny you spend on them. Taking these plans ensures that you have a worry-free life if any such unfortunate event occurs with you.  

How to buy disability insurance?

Many insurance companies offer disability insurance policy in India. The following acts as a checklist while buying disability insurance.  

 

  • Choosing the correct coverage amount:

Your income and age will help you determine the coverage you need in a disability insurance policy. You need to ascertain the coverage amount by considering factors such as lifestyle, short term and long-term financial needs, etc. Also, consider any liabilities to get a complete figure of coverage that you may need to take. Taking the right amount of insurance cover helps in having a comfortable lifestyle, even in any contingencies.

  • Compare plans in the market:

Many companies offer disability insurance in India. Compare different plans that are offered in the market based on the coverage and benefits provided by these plans. Choose plans that offer the widest coverage. For example, try to choose plans that offer comprehensive coverage for partial, temporary, complete disabilities. Taking wider coverage ensures you are covered for any contingency arising out of any disability due to an accident.

  • Read policy word documents to understand the terms:

Disability insurance policy has several terms and conditions concerning determining and classifying types of disabilities. Always read the policy word document to understand the terms and conditions relating to the payment of benefits, policy coverage, policy term, etc.

As mentioned, you can buy disability insurance as a standalone insurance policy or as an additional rider# with other insurance plans such as term insurance, guaranteed1 plans etc. Many companies offer disability insurance as an add-on rider# along with guaranteed1 return plans in India.

Choose the best option that suits your requirement. Take a standalone policy if you are looking for a specific policy that offers complete disability insurance coverage for you.  

Some pointers while choosing and buying plans: 

  • Disability insurance protects you from any mishaps resulting in your partial or permanent disability.

  • Determine the coverage amount by considering your income, age, lifestyle and liabilities.

  • Choose plans that offer comprehensive coverage and have a good reputation in the market.

  • Read the terms and conditions of the policy that govern benefit payouts upon being declared as disabled.

  • You can choose a standalone policy or bundle it with other insurance plans as per your requirements.

  • Certain companies also offer long term disability insurance till your old age. Choose plans that suit your requirements.

 
Conclusion

You should buy disability insurance plans to secure your family from any eventualities resulting in your disability. These insurance plans replace your loss of income. You can also choose plans that pay benefits for temporary disability.

If you are looking to protect your family from all contingencies, buy Tata AIA guaranteed1 return plans with disability insurance as an add-on rider#. This way, you get comprehensive and wider benefits of receiving guaranteed income and coverage for any disability due to an accident.

Visit the Tata AIA website to choose policies and also calculate Tata AIA premium with the help of the online premium calculator. You must protect yourself and your family from any future contingencies by choosing the appropriate coverage with the right plan!

L&C/Advt/2021/Aug/1299 

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Disclaimer
  • Insurance cover is available under the product.

  • The products are underwritten by Tata AIA Life Insurance Company Ltd.

  • The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.

  • For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.

  • This blog is for information and illustrative purposes only and does not purport to any financial or investment services and do not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

  • Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.

  • Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.

  • #Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance Advisor/ branch

  • 1Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term and Age at entry