If we trust the Social Security Administration, 25% people of the age group 20 or nearby will be disabled and unable to work before they reach their late 60’s. But people don’t know that unlike the medical, dental and vision insurance, there are other insurance products which are designed to replace a portion of their income when they fall sick, become disabled or cannot work.
As the name suggests disability insurance is one which is provided when an employee is disabled and hence cannot work. Worker’s compensation insurance provides the benefit of partial wage replacement if an employee is hurt on the clock but disability insurance provides them wage replacement benefit when the employee cannot work due to a disability or illness caused away from work.
Disability insurance does not replace all of someone’s income but provide wage replacement benefits that cover, on average up to 60% of employee earnings. Though it not the ideal case but something is better than nothing. Moreover, it can be of great help to satisfy the medical needs of the employees and the daily need of their family.
So, now we shall have a quick look on the top disability insurance companies of India.
Apollo Munich Personal Accident Plan
Anyone can meet an accident irrespective of the time and place and its impact on the person or his family can vary from temporary to permanent and from big to small. This policy is issued for the period of one year and covers the injuries sustained, occurred anywhere in the world. The policy compensates the nominee with a fixed sum in case of death of the policyholder in an accident or in case of partial or full disability.
The compensation should be in the form of fixed sum insured as per the provided in the policy. The policy also covers the policyholder for any hospitalization or outpatient expenses that may incur in case of an accident. There Is also an option for buying the insurance online and take away the risk from your loved ones by securing their future.
Bajaj Allianz Personal Guard Plan
The entry age for this policy is 18 years to 65 years. The sum insured can be from ten lakh rupees to twenty-five lakh rupees. It can be renewed up to 65 years of age for policyholder. It is an annual policy and there are 30 days’ grace period for renewal.
200% of sum insured is payable in case of Permanent Total Disability, 100 percent of sum insured is payable in case of Temporary Total Disability which is restricted up to 50% for the spouse. The other benefits include children’s education bonus 5,000 per child up to a maximum of 2 lakhs, below the age of 19 or 10% of sum insured, whichever is lesser. Hospital confinement of 1,000 rupees per day for a maximum of 30 days of hospitalization.
Medical Expenses up to 40% reimbursement of valid claim amount or medical bills, whichever is lesser. Transportation of mortal remains to hospital, cremation ground, limited to the lower of five thousand rupees or 2% of sum assured. But the policy holders have to get examined by Bajaj Allianz medical advisors upon request and must do so how many ever time necessary.
HDFC Ergo Personal Accident Insurance Plan
This policy not only covers the policyholder but also the family. Its coverage ranges from 2.5 lakh rupees to as high as 15 lakh rupees. All accidental risks including permanent disability, dismemberment, accidental death or even broken bones, burns are covered under this policy. It has the option of online renewal and purchase.
It covers accidental death within 12 months from the date of the accident, then 100 percent of the sum assured is paid. The policy covers 100 percent of basic sum insured if the policyholder meets an accident that results in permanent disablement within 12 months from the date of accident. The other benefits include insured person’s counseling benefit, family counseling benefit, evacuation benefit, medical insurance premium benefit, dependent child education benefit, home tuition benefit, rehabilitation benefit, parental care benefit, etc.
The policyholders can be between the age of 18 and 65 years, the sum insured under this plan ranges from 2.5 lakhs to 15 lakhs rupees. Under this policy the insurance company must be intimated within 30 days of the occurrence, one can call at the toll free number of the company, claims service representative will provide guidance and assistance for the documents. After all the documents are submitted, the total process will be completed within 7 working days.
ICICI Lombard Personal Protect Policy
This policy also offers compensation in case of accidental death, permanent total disability and permanent partial disability along with dismemberment. In this plan, the premium needs to be paid in lump sum which can later be availed within 12 months.
The policy provides coverage to the policyholder, spouse and dependent children till the age of 25 years. It covers accidental death, total and permanent disability as well as permanent partial disability. The additional benefits include accidental hospitalization expenses which reimburses medical expenses reimbursed during hospitalization arising out of an accident.
There is a facility where a specified daily allowance is paid for each day of hospitalization due to an accident up to a maximum of 30 days in a year. This policy compensates for injuries caused anywhere in the world, covers accidents due to war and terrorism during the policy period, there is no medical checkup required at the time of policy issuance. The policy can be purchased online as well.
TATA AIG Income Guard Policy
The policy offers the insured person’s nominee the principal sum as applicable in case of accidental death of the policyholder. Accidental death of an insured person aged 17 or below the maximum sum payable is 10 percent of the principal sum insured. If the injury to the policyholder results in more than one loss, only one amount, the largest will be paid.
The policy does not cover loss caused due to infections, attempted suicide, any intentionally self-inflicted injury or illness or sexually transmitted disease, any mental or nervous disorder. It doesn’t cover people of war, civil war, invasion, insurrection, revolution, act of foreign enemy, hostilities, rebellion mutiny, etc.