Disability Insurance 06 - Types of Coverages
As we mentioned in other articles,the main purpose of disability insurance is to to replace an individual's income should they be unable to work, helps to balance between personal earnings and expenses suddenly is upset, and the threat of financial disaster can quickly become a reality as a result of either an accident or a sickness. In this article, we will discuss types of disability insurance issued by the insurance companies.
There are 2 types of disability insurance
1. Non-cancelable and guaranteed renewable policies:
This is the most desirable form of coverage. Its coverages include the following
a) After the policy is issued,the premium payment is guaranteed by the insurance company over the life of the policy.
b) Unless the insured fails to make premium after the grace period expired. The insurance company cannot cancel the contract for any reason.
c) After the policy is issued the insurance company can not change the benefit amount for which the insured has been underwritten.
Since the policy is non-cancelable and guaranteed renewable, it is the most expensive form of disability insurance. Also to cope with the claims that are increasing as a result of the liberal policy definitions and a liberalization of underwriting guidelines, most insurers have increased the premium schedules recently.
2. Guaranteed Renewable Policies
The insurance company can not cancel the policy, however, they can increase the premium on a class basis to reflect its claims experience.These type of policies are becoming increasingly popular due to the savings in premiums because it is less expensive than non-cancelable and guaranteed renewable policy.
I hope this information will help. If you need more information of the above subject, please visit my home page at:
Related Tags: insurance, business insurance, accident, disability insurance, disability, sickness
I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Motor Trade Rundown
It is not just cars that must be insured on British roads, every type of motor vehicle is required b - Claiming Compensation For Defective Products
Compensation claims for injury and damage caused by faulty, defective products normally target eithe - Ideas To Uncover Affordable Rate Auto Coverage
These days, everyone is looking for ways to lower expenses. Certain costs like home and car insuranc - Should It Be Illegal For People To Drive Without Vehicle Insurance?
There are many drivers on the road who drive un-roadworthy vehicles. The worst part is not that they - Do You Need Static Caravan Insurance?
Static caravan insurance is an automobile insurance that deals with vehicles that are used while on - Insurance - Tool For Personal Finance Planning
Financial planning is must for every individual. When we start saving money for our goals, there is - Family Life Insurance Policy For The Families Staying In Dubai
The main motive of insurance policy is to give financial security to the person's family especially - Buying Temporary Health Insurance In Florida
You are the resident of Florida? You are between jobs and therefore are not looking for a long term - Car Insurance Is Of The Utmost Importance In Today's Lifestyle
In today's hectic lifestyle we are always rushing to get from one place to another, whether it be ru - Health Insurance Companies Are Using New Laws As An Excuse To Raise Their Rates
Government officials are cautioning insurance companies to stop utilizing scare tactics to steam up
Most viewed articles in this category:
- International Health Insurance: Insure Yourself While in Go
We all will agree that whether we are living in our home country or abroad, our health needs constan - It's Never Too Early to Buy a Long Term Care Health Insurance!
Most people delay buying a long term care health insurance because they think that it is too early t - Home Owner Insurance Quote: Stay Safe!
Your house will not be fully secured until and unless you have a home owner insurance policy. A home - The Benefits of Health Insurance Are Immense!
Almost everyone in this world has fallen ill sometime or the other. Apart from illness, many people - What Happens When You Make An Insurance Claim?
If you've never filed a loss claim before, you might feel nervous and confused about the whole proce - Pet Health Care Insurance: Show your Pets That you Care!
Having a pet in one's household is a joyful experience. It can provide you with entertainment, compa - Three Ways to Buy Long Term Care Without Paying Premiums Out of your Pocket
Stop 100 people over 65 on the street and ask them if they will ever need to go to a nursing home an - Protect That Bauble: Engagement Ring Insurance
Engagement ring insurance can protect your bauble in case a worst case scenario happens...So you've - Do I Need Diamond Ring Insurance
If you have to ask whether or not you need diamond ring insurance you probably do. There's somethin - Choosing a Benefits TPA
The use of third-party administrators (TPAs) is one of the hottest trends in insurance today. Accor