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.
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.