Disability Insurance

If you are injured or ill and are out of action for an extended period of time, then disability insurance is intended to make up a percentage of your income. Also known as income protection insurance, disability insurance varies in a great degree with some of the cheaper policies only covering you for a period of five years and better quality insurers will make sure you are looked after until retirement age. Either way, if you become disabled, that will greatly impact your potential for income and disability insurance is a way of staying solvent during this time.

Who is a potential candidate for disability insurance?

If you are not financial independent or able to maintain an income in the event of disability or long term illness then you review whether disability insurance is an option for you. As disability insurance replaces your income you need to ask yourself whether you can afford to go without your work related income into the future. There is no requirement by law to have a disability insurance policy.

What typically does a disability insurance policy cover?

Disability insurance typically pays an income stream to you in the event of disability or long term illness. Disability is a broad term and covers a host of afflictions that could cause you to stop working. For the exact list of conditions that you are covered for, check with your potential insurer.

Most policies cover terms from 5 years up to retirement age. The payment level you receive is purely down to the premium you pay. The higher the premium, the higher the payment. Some insurers even include complementary health sessions as part of their package to assist your recovery. Insurers are beginning to offer more and more with disability insurance as they know the sooner you get fit and well, the sooner they can stop paying.

What typically does a disability insurance policy not cover?

A standard disability insurance will not cover disability or illness to a blue-collar worker. Blue collar workers are in a higher risk group so wont be covered by a basic policy. Normally, blue collar workers will have to pay a much higher premium to have the same kind of cover as a white collar worker.

Additional insurance products that policy holders might take out in this area

Many people also look at health insurance policies, which cover the medical bills that are incurred is crucial for the wellbeing of each and every person. Healthcare is getting increasingly expensive and without health insurance potentially be unable to get the medical treatment you would like in a timely fashion. Disability insurance normally takes time to establish as it is normally means-tested. Health insurance can fill the gap between your first diagnosis and your first disability insurance payment.

Additional coverage for a disability insurance policy

Disability insurance has two main variables, the length of cover and the percentage of income paid to you. Additional coverage amounts to the percentage of income you would like covered which generally has a top limit of 65%, and length of cover can reach to retirement age. By getting the full amount of coverage, your premiums will invariably go up.

What will disability insurance typically cost?

Disability insurance plans differ massively between insurers. Shopping for the most competitive rate available will end up costing you more money in the long run as your payout may only last a year.

Free disability / income protection quote

X-Life offers a comparison service where you can compare over 500 different policies.

You are able to receive a free quote from X-Life via this link.

* Note that X-life does not compare all income protection quotes in the marketplace

Where Can I find Disability Insurers?

You can find a wide selection of Disability Insurance brokers and agents at www.disabilityinsurance.net.au

Please note that this is not an exhaustive list of all available dental insurers in the marketplace.

Other Types of Health / Life Oriented Insurance