Can Life Insurance Be A Substitute For Disability Insurance?
People often confused with the word ‘disability insurance’ and ‘life insurance’. A layman always thought that the two are similar words and he cannot able to make difference between the two.
Insurance means protection against some uncertain risk. Life if full of odds and uncertainties and to overcome these uncertainties and to protect himself and his family a person takes an insurance coverage. Insurance companies are making various kinds of insurance policies only to cover these types of uncertain risks. Today a common man is full of different types of insurance like vehicle insurance, fire insurance, life insurance, medical insurance, property insurance etc. but most important among all of this is life insurance. It is true that life is quite uncertain and uncertainty can happen any time so to give a protection sheet and peace of mind a person applied for insurance policy An insurance company will pay the sum to the family if anything unusual will happened to the insured. For e.g. if the person having insurance dies in the car accident then the insurance company will pay the insured sum to the insured person’s family. It can only help the family to maintain its current standard of living even the earning member of the family is no more.
Now imagine a situation that an insured person meets an accident and by God’s grace he manages to survive but unfortunately get disabled for a certain period or rest of his life than what will happen? Now it is not only possible for him to support his family but in this case he also becomes dependent on his family and suppose he is the only bread owner for the family then the situation become worsen because there is no monthly income to support. Now in this situation life insurance policy is of no use because it can only be claimed after the death of the insured.
Due to this reason disability insurance is also known as ‘social security insurance’. It is hard to apply for disability insurance policies because there are certain rules and regulations imposed by the government. For applying you need to have a fixed monthly income and your family is needed to be dependent on you.
80% of the applicants are rejected in the first round so sometimes you need to consult a lawyer also before apply for disability insurance.
Disability insurance sometime provided by the employer. In order to give protection to their employees some companies apply this policy. This policy is majorly taken by those companies in which the nature of work in hazardous and chances of disability while work is more. So you need to check with your company before applying for disability insurance.
So we can conclude that the disability and life insurance is not the same thing but they are entirely different from one another. You can say that these two are complementary for each otherbecause both of them have entirely distinct features.
