Among the few merits of Individual disability insurance are financial support and aid that is presented by Social Security to families and individuals with a lowered income due to disabilities. Employers can give this kind of cover to their employees. This kind of cover ensures that a disabled person and their family can continue receiving income based on certain amount of time and wages of the disabled persons prior to him or her becoming disabled. There are many benefits than a person can get from having this kind of coverage.

The cover is some kind of protection. There is 30% possibility that you will be disabled by the time you reach the age of sixty five. However, not all jobs give their workers disability insurance. In addition, those individuals that are self employed have no idea or have less knowledge concerning this cover. Thus, this cover usually offers a tax free income for all your needs especially if you are not capable of working.

Caps are another merit. Group plans generally have a cap. This implies that they will only pay up a certain amount and percentage of your earnings. If your earnings are slightly lower, then your actual percentage will be less. Nonetheless, most firms do not allow an individual to purchase more than 60% of their income.

You find that, given that disability payments are normally free of charge, allowing a more than 60% will encourage indolent and the challenge to extend the cover. The recipient will end up receiving a lot of cash on disability than he or she would have after he had levies removed from his or her pay from work. This will in turn minimize the incentive for the person.

Another benefit is concerning your own occupation. Group disabilities policies normally consider one disabled if you are not capable of doing your tasks after some given time. For instance, a surgeon that lost his finger can teach but not carry out surgical procedures. Thus, this expert will not be eligible. You can buy individual policy with the occupation clause that will pay benefits specifically if you cannot carry out duties in your profession.

Locked-in benefits. If a person has this cover, it is very hard for the company to take it back as long as this person has a definite renewable policy. Nonetheless, if you fully depend on your boss, your firm can decide to switch carriers on deny you the cover the following year.

Another benefit is on inflation protection. With this policy, you can affix inflation protection. If you are disabled for a long period, the purchasing power of the fixed payment will not increase. With this inflation protection, the payment will increase with the increase in inflation.

Moreover, individual disability insurance usually has a partial disability benefit. For instance, if you are unable to work on full time basis and encounter a drop in income, it will pay partial benefits. In addition, you will get partial benefits if you were fully disabled but you can work part time after a while.