Here's Why You Must Invest in a Disability Insurance Plan

Disability Income Insurance

Life is unpredictable, we do not know what is coming for us or what our future holds. Unforeseen and unfortunate mishaps often knock on our doors, which can be both financially and emotionally draining for our loved ones and us. Therefore, it is imperative for us to be well prepared in advance so that we do not face any hassle and seamlessly achieve all our goals and dreams. Investing in an insurance policy has seen a recent rise and has become one of the ideal ways to secure your and your family's future. It secures you financially and ensures that you do not face any hassle in the future in case of an unfortunate and unforeseen mishap. One of the best insurance policies to invest in for yours and your family's financial security is a disability insurance plan.

There are various disability insurance plans available in today's time. Therefore, it is imperative for you to compare and go for a plan that is best suited for you and your family. Apart from choosing the best disability insurance plan, it is also essential to go for a life insurance company that is the best, most trusted and leading company.

Let us first understand what a disability life insurance plan is.

What is a Disability Insurance Policy?

Before you invest in a disability insurance plan, it is essential for you to know what exactly it is. In a disability insurance plan, you pay a certain premium amount to your insurance provider and in exchange, you get payments in case of an unfortunate event, resulting in policyholder’s disability. A disability insurance plan ensures that you and your family do not face any financial constraints in the future and ensure that you can seamlessly continue with your life even if your disability does not allow you to earn. In such cases where your disability does not allow you to work and earn for your family, the disability insurance plan will provide you with a certain amount in the form of monthly income so that you do not have to financially restrict yourself. With this, you do not have to worry about your monthly incomes, medical bills, expenses on basic necessities and so on.

The premiums you have to pay for disability insurance plans are generally affordable and pocket-friendly compared to other plans, making it easier for anyone to invest. Moreover, instead of investing in an entirely new policy to avail various benefits, insurance companies offer rider benefits on a disability insurance plan.

What Does Disability Insurance Plan Cover?

A disability insurance plan covers both temporary and permanent disabilities that are caused by an unforeseen accident. In case you are permanently disabled, you will be provided with a full lump sum amount of sum assured. In the case of temporary and partial disability, you are entitled to receive a certain portion in the form of monthly incomes.

Benefits of Investing in a Disability Insurance Plan

 

1. Financial Security to You and Your Loved Ones

Unforeseen accidents may cause a temporary or permanent disability. As a result, it may restrict you from earning for yourself and your loved ones. This may cause a financial burden on you and your family, as a result of which you might face a hassle in achieving your goals and dreams. No one wants to compromise theirs' and their loved ones' dreams, right? Investing in a disability insurance plan ensures that you and your family are financially secured. Moreover, in case of a disability, you do not have to worry about financial restrictions. The plan will provide you with a lump sum or partial amount of money to ensure that you and your family can seamlessly carry on with their lives without facing any financial constraints.

2. Tax Saving Benefits

Did you know that you can save on taxes if you invest in a disability insurance plan? The premiums you pay for the disability insurance plan are eligible for tax benefits under Section 80C of the Income Tax Act, 1961, subject to conditions mentioned therein. This is one of the key features of investing in a disability insurance plan. However, tax laws are subject to change from time to time.

3. Income Replacement Benefit

In case you face an unfortunate accident or sickness resulting in a partial or a complete disability, you might be restricted from working and earning. It might put you in a situation where you and your family might face a financial hassle. Investing in a disability insurance plan ensures that you do not face such difficult situations. If you are unable to earn, the disability insurance plan provides you with a lump sum amount of money in case of a permanent and periodic income in case of partial disability is provided. This acts as an income replacement and ensures that you and your loved ones do not face any financial restrictions while you are on your way to achieving your goals.

4. Mental Peace

Investing in a disability insurance plan lets you be at peace of mind. In case of a disability, the stress of not being able to earn for yourself and your loved ones can be daunting and worrying. Moreover, as a disability insurance plan financially secures you by providing regular monthly incomes, you do not have to be stressed regarding any financial constraint you and your family might face.

Wrapping Up

Investing in a disability insurance plan ensures that you do not face any financial restrictions and allows you to recover in a peaceful and stress-free way. Moreover, it provides you with a regular amount of money as an income replacement to ensure that you and your loved ones seamlessly continue their lives. As important as investing in a disability insurance plan is, it is also essential to go for a leading insurance provider.

Disclaimer:

*Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time
The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms and conditions, warranties, etc. carefully before concluding a sale.
Make responsible financial decisions. Consult with your financial advisor before making any decisions on insurance purchase.

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