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To Buy: 1800-258-5899 (9:30 AM to 6:30 PM)
For Existing Policy: 1800-103-0003/ 1800-180-0003/ 1800-891-0003
customerservice@canarahsbclife.in
Contact us
To Buy: 1800-258-5899 (9:30 AM to 6:30 PM)
For Existing Policy: 1800-103-0003/ 1800-180-0003/ 1800-891-0003
customerservice@canarahsbclife.in
Physical disabilities, whether short-term or long-term, can affect your capacity to earn and perform normal day-to-day functions. Disability insurance helps you earn a part of your lost income in case you cannot work due to a disability caused by an accident or sickness. It helps you receive income to cover a loss of income and manage expenses.
A majority of accidental disability victims need significant modifications to live an independent life. Disability insurance helps you compensate for the changes an accidental disability can bring to your life and maintain your lifestyle. Such insurance plans help you financially stabilize your life after a disaster and get back on your feet. The coverage is usually a part of other health and life insurance plans.
Disability insurance is a type of life insurance policy that pays income benefits to the policyholder in case they are not able to work and earn an income due to a disability. The policy can financially protect you in case you become disabled due to an accident or a disease.
Learn more about different types of disability insurance.
A major disability can alter the shape and routine of your normal life. Whether accidental or stemming from an illness, a disability could mean any or all of the following: a) Loss of income due to job loss b) Home and vehicle upgradations c) Medical therapies for rehabilitation
Disability insurance cover will ensure that you have adequate financial support to sustain your life after such disabilities. It is a defined benefit plan that provides a fixed benefit amount if you encounter a disability.
The benefit amount may change based on the magnitude or severity of the disability. Usually, a 100% benefit amount is payable upon contracting permanent total disability. Permanent total disability refers to the loss of at least two limbs, for example, both hands, eyes, hearing in both ears, etc.
Permanent Total Disability, defined as the loss of two limbs or sensory abilities
Permanent Partial Disability, i.e., loss of one limb
Temporary Total Disability, i.e., a state of incapacitation or paralysis for an extended period
Temporary Partial Disability, i.e., loss of function in one limb for a period
While disability insurance may provide some relief for the first three conditions, the fourth condition is normal and does not require insurance.
Disability insurance cover can help you take care of the costs related to therapy, home and vehicle makeovers, etc. to normalise your life after disability. The lump sum or regular income benefit from the insurance may also take care of your loss of income due to disability. Ensure that you choose the best disability insurance plan as per your needs.
Short-term disability insurance typically has a shorter duration for the cover. The policy term may last up to two years, and such short-term policies have a shorter waiting period of just 14 days.
Thus, these plans will be a lot cheaper. As a result, you can use them to protect yourself against the possibility of becoming disabled as a result of an accident or while undergoing treatment for a disease.
Long-term disability insurance, or permanent disability insurance, can last anywhere from up to 80 years of age, or even a lifetime. However, the usual waiting period ranges from 2 to 4 months.
When you choose disability cover with your standard term insurance plan, this is the disability cover you are opting for.
Disability income insurance is a defined benefit insurance plan. Meaning, you can define the coverage amount under the plan at the time of purchase. Later, the policy will release this benefit amount in full or in part.
Eligibility for getting disability insurance is based on the following factors:
Minimum age is 18 and the maximum age for opting for the cover can go up to 70 years. While the minimum age will not go below 18, the maximum age ranges between 50 and 70 years between policies.
You should have an income to afford the premium.
Disability insurance covers physical disabilities of different severities. Depending on the range of benefits, different disability insurance plans may cover any or all of the following disabilities:
These are disabilities that make you completely bedridden for sometime leaving you unable to work. Disability insurance may provide weekly cash benefit to sustain your regular expenses while you recover.
Partial but permanent disabilities refer to situations where permanent loss of limb or function of a sensory organ is a partial permanent disability. For partial disability, the policyholder may receive 50% or less depending on the severity of the disability.
Such condition arises when the person loses the function of two or more limbs. For example, both hands or one hand and one leg, hearing in both ears, eyesight, etc. This cover is the most standard cover. For total permanent disability, the policyholder will get 100% of the benefit amount.
While disability insurance will cover disabilities arising from ailments or accidents, it does have a few exclusions. Here are the most important exclusions or factors not covered by disability insurance:
a) Disabilities arising out of ailments, accidents, or injuries obtained within the exclusion period.
b) Accidental injuries from adventure or sports activities, e.g., mountaineering, scuba diving, skydiving, etc.
c) If you have an accident while flying an aircraft.
d) If the injuries are self-inflicted or result from a suicide attempt.
e) When you are injured while under the influence of alcohol or any other non-prescription narcotics or psychotropic drugs.
f) Disabilities while operating for the armed forces, including paramilitary
g) The insurance also does not cover injuries obtained in war, civil unrest, terrorism, etc.
h) If you are injured while participating in a strike, industrial dispute, riots, or any illegal or criminal activity.
i) If your injuries result from exposure to nuclear or biological radiation, reaction, or chemical contamination.
j) If you are already physically handicapped or are dealing with a mentally unstable person.
The majority of exclusions point to the inert nature of the cover, which provides financial assistance for disabilities obtained in the normal course of life. The policy will specifically exclude extraordinary or self-inflicted injuries.
Disability insurance offers a lump sum and regular income benefits to keep you afloat financially after disability.
You can focus on treatment and therapy to normalise your life instead of stressing about survival.
Weekly cash payments when you are bedridden are useful while you are recuperating from a major accident.
The insurance policy protects you against unexpected disability.
The disability insurance claim process is similar to the health insurance claim process, with a few exceptions. The exceptions come into play when the claim is for permanent total disability related to voice, eyesight, or hearing.
Disability is a rare but challenging event in life. So, you need to pay close attention to certain features, benefits, and terms of the policy while buying disability insurance. Here are the things you should consider:
The disability cover should have enough sum assured to provide for your and your family’s regular survival expenses and the cost of therapies and modifications to your home and vehicle. At least 25% of your life cover should be good enough for that.
Selecting disability insurance that covers the widest range of disabilities should be your aim. However, with the range, the premium cost will also increase. So, try to strike a balance between the two.
Insurance policies usually have very clear definitions of what is considered to be a disability and what is not. So, do check the policy contract to understand the definitions followed by the insurer.
Despite the comprehensive nature of the cover, there are a few natural and legal exclusions to disability insurance. Before you assume anything, have a look at the exclusions section in the policy contract.
You can buy disability insurance as a standalone policy or as a rider with your health insurance or life insurance plan. You can buy disability insurance online or offline, as per your convenience.
While disability insurance seems like a median cover lying between life and health insurance, you have a spectrum to consider. You can opt for a basic ATPD (accidental total and permanent disability) cover or a comprehensive one.
The purpose of disability insurance should be to help you get back on your feet after a disability.
Selecting disability insurance that covers the widest range of disabilities should be your aim. However, with the range, the premium cost will also increase. So, try to strike a balance between the two.
Insurance policies usually have very clear definitions of what is considered to be a disability and what is not. So, do check the policy contract to understand the definitions followed by the insurer.
Health insurance covers like Mediclaim and critical illness insurance should also continue. However, health insurance premiums may rise after the disability.
| Parameters | Disability Insurance | Optional In-Built Cover |
|---|---|---|
| Coverage | Covers disabilities from accidents as well as medical conditions, i.e., more comprehensive coverage | Covers only accidental disabilities |
| Term | Longer and independent of life insurance cover | Depends on the base policy term |
| Premium | Can be higher as it covers a wider range of conditions | Nominal and part of base life cover premium |
| Sum Assured | Select as per your needs | Limited as per the base life cover benefit |
Disability insurance cover improves your financial protection against unforeseen and unfortunate events. Disabilities can significantly change the way you live and work. Thus, a little assistance on the way is better while you recover medically and financially.
Disability insurance is only available to people who are considered medically fit. So, you may not be eligible for disability insurance if you have an existing disability. However, the insurance may cover a disability arising out of an accident or illness that occurred right before you bought the policy.
Usually, 25–50% of your total life cover amount should be adequate to support you in normalizing your life after a disability. But you may increase or decrease the amount based on your needs and affordability.
Usually, 25–50% of your total life cover amount should be adequate to support you in normalizing your life after a disability. But you may increase or decrease the amount based on your needs and affordability.
Yes, you should always check the claim settlement ratio and solvency of the insurer before buying the insurance. This will ensure that you or your nominees receive the insurance benefit when it is needed.
