What is Long-term Disability Insurance?

When a prolonged illness or an accidental injury makes an individual incapable of earning a livelihood, it is termed a disability which can be long term or short-term. A disability can drain all the savings and investments in no time if you are not prepared to deal with it. In such a situation, disability insurance can provide a safety net against your disability. Read below to learn what is long term disability insurance, its benefits and what does short term disability cover.

What does Long Term Disability Mean?

A long term disability, also known as Permanent Total Disability,results in permanent and complete impairment which is beyond recovery. In this condition,  the individual becomes disabled for life due to an accident or a critical illness and is unable to perform regular functions which may result in the loss of income. Let us understand what is considered long term disability:

• Total and irrecoverable loss of eyesight in one or both eyes
• Total and irrecoverable hearing loss in one or both ears
• Total and irrecoverable loss of one or both limbs
• Total and irrecoverable loss of use of hands and feet
• Paralysis
• Second and third-degree burns

What does Long Term Disability Insurance Cover?

A long term disability replaces a portion of your income lost due to a long term disability caused by an accident. A disability insurance financially supports your family when you are not able to earn. It not only covers lost income but also covers your medical expenses along with many other expenses. You can buy a long term disability insurance cover either as an add-on to your existing plan or as a standalone plan depending on your requirements. Here is the coverage available under long term disability insurance.

• Permanent total disability is covered from 50 to 100% of the sum insured depending on the severity of the injury or disability.
• Fractures are covered up to the limits defined in the policy and subject to policy terms and conditions.
• Burns are also covered depending on the degree of burns.
• Child education is covered in case the insured dies or suffers from a permanent total disability. 
• Prosthetics and assistive devices like wheelchairs are also covered as per the limit specified in the policy.
• Diagnostic tests recommended by a medical practitioner are also covered up to a specified period in the policy.
• Nursing care prescribed by a medical practitioner is also covered.
• Accidental death of the insured is also covered and 100% of the sum insured is paid to the nominee.
• Repatriation of mortal remains is covered where the cost of transportation of the remains to the city of residence is paid by the insurer.

What are the Benefits of Long Term Disability Insurance?

There are many advantages of investing in long term disability insurance.

1. Financial Support

This type of insurance provides financial support in difficult times by replacing income, funding a child’s education and covering medical expenses.

2. Customisable

The coverage offered by a long term disability plan can be customised with the help of add-on covers like accidental hospitalisation or sum insured improvement.

3. Covers Day-to-day Expenses

It takes care of your daily needs and provides financial stability by covering daily expenses also including groceries, rent, utilities, etc.

4. Provides Mental Peace

Peace of mind comes with financial security. When you have financial assistance in the most challenging times, it gives you peace of mind and lets you focus on your recovery.

>> Also Read: What Disablements Are Covered in Health Insurance Plans?

What is Short Term Disability Insurance?

After understanding what does long term disability cover, let us discuss short-term disability or temporary disability. Short-term disability refers to a disability that lasts for a short period and is recoverable, such as a fracture. This type of injury can make you unable to work for a short time. Short-term disability policies typically provide coverage for a specified period, which can range from a few weeks to two years.

How to Select the Right Long-term Disability Insurance?

There are certain key features you should consider that will help you select the right long term disability insurance.

1. Sum Insured

Choose a sum insured value depending on your annual income to ensure your family gets adequate financial protection in an unforeseen event. 

2. Renewability

Choose a policy that is renewable for life or at least until you retire, so that you can meet your financial obligations even if you become disabled.

3. Premiums

The premium of a long term disability plan depends on your age, health, occupation and the coverage you opt for. As there are many options available in the market, select a policy with affordable premiums and flexible premium payment terms.

4. Inclusions and Exclusions

Check your policy’s coverage and understand all the inclusions and exclusions with the limits specified in the policy to avoid claim rejection in future. Select a policy that offers wide coverage against maximum types of disability.

5. Optional Benefits

Look for a plan that offers optional benefits to enhance your coverage. Optional benefits like accidental hospitalisation, convalescence benefit, PTD improvement, PPD improvement, daily allowance, compassionate visit etc. boost the basic policy coverage.

Concluding lines

A personal accident cover provides coverage for long term disability. You can select it as an add-on to an existing health insurance plan or as a stand-alone policy. Such a plan not only covers disability but also accidental death. It is recommended that you opt for a stand-alone policy for comprehensive coverage.  Our personal accident policy  Care Secure offers financial assistance for the loss due to accidents and injuries from burns and fractures, loss due to Permanent Total Disability and Permanent Partial Disability, accidental death etc. The policy comes with multiple sum insured options ranging from 10L to maximum of 50L. Connect with our insurance experts to get more information on the plan benefits and coverage.

Disclaimers: All plan features, benefits, coverage, and claims underwriting are subject to policy terms and conditions. Kindly refer to the brochure, sales prospectus, and policy documents carefully.