Disability insurance policies get their ratings from insurance policy holders on the basis of quality provides by insurer. From affordability of getting disability insurance to receiving the premium or coverage is evaluated for having a disability insurance.
Important factors considered in evaluating disability insurance policy:-
Definition of disability –
The definition of disability and cases such as diseases, illnesses or injury included in a policy can be defined differently by different companies. The disabilities policies are further classified into long term disability, Short term disability, physician disability, group disability etc.
In the definition of disability further detailed provisions of policy are mentioned in which inclusion and exclusion of different disabilities & terms and conditions are specifically enshrined in it.
Your occupation also matters a lot as of which type your occupation is like whether you are employee or self employed. Your income plays a crucial role in deciding the value of your insurance or the premium.
Cost of coverage –
The most important component of disability insurance is the price or premium. Premium rates received are based on the factors such as insurance policy holders age, monthly benefits etc.
Group disability insurance- the policies offered in this insurance is less expensive than other options. But this policy offers a general definition of disability which often provides least amount of coverage.
Individual policy –
It becomes little expensive if you have to buy it yourself but it definitely provides high premium. These policies are also considered non-cancellable, so the coverage and rates are locked in and can’t be cancelled in the future, as long as premium payments continue to be made.
Policy riders –
By adding residual rider to the policy it would permit disabled person to continue receive benefits proportionate to the loss of income if they return to their occupation.
Cost of living adjustment-
it is designed to help policy holder to keep pace with inflation after the disability has lasted for around one year.
Disability insurance replaces major portion of your income. The income resources are kept alive so that even after getting a disability the policy holder don’t have to go through any financial hardships. The income insured would be based on the amount paid for getting insurance policy or according to the last salary drawn by the insured. But again the evaluation is based on other factors such as age and type of disability insurance policy.
Evaluation of the policy gives us the exact idea about how much benefits policy holder will receive in different schemes and what is the appropriate value of your financial investment on disability insurance.
Evaluation is particularly based on occupational context to determine that how individuals disability would affect his or her ability to perform a particular job.
Also the evaluation of claiming the insurance is done by providing the genuine medical records to get the appointed authority and also checking the fact whether the policy holder is able to perform his assigned work/ job or not .