Incapacity to work insurance can be a very useful instrument. It is important to know what its main specifications are and what to consider when contracting. Not all proposals are the same or cover the same aspects.
To begin with, it is necessary to distinguish health insurance with disability cover from specific insurance for incapacity to work:
- Health insurance may have as complimentary coverage some form of compensation or support in case of incapability to work. There are also health insurance policies that are taken out to cover the needs of someone who is a disabled person.
- The simplest version of incapacity to work insurance will provide financial compensation if the policyholder becomes incapacitated for work.
Inability to work insurance
As we said before, there is no single type of disability insurance. In fact, in the last few years, the offer has grown to be very wide.
In origin, disability insurance was directly related to life insurance. If we take a look, most life insurances, if not all, also provide independent coverage in the event of the insured’s disability, not only in the case of death.
However, with the lapse of time and the specialization of the insurance market, policies are becoming more detailed. This has led, for example, to the appearance of disability insurance.
This is an insurance policy in which the insured person’s standard of living is protected in the unlikely situation that, due to illness or accident, he/she becomes incapacitated for work.
At this point, it is important to remember that other insurance policies can also cover a similar situation. For example, professional accident insurance can provide compensation in case of incapacity as a result of an accident at work. Some travel insurance policies may also include similar coverage.
Facts you should be aware of in the disability insurance field
Before taking out incapability to work insurance, there are some very important points to bear in mind:
- These insurances are not specific to a single situation, so they can cover different disability settings under a single policy.
- They may be temporary. Disability insurance may stop paying the benefit if the situation of incapacity is reversed or, in some cases, if the insured person starts working.
- It is also possible to access the compensation in a single payment or monthly quotas, although this must be agreed upon in advance.
- Compensation may be compatible with other types of benefits or allowances, although to a limited degree with a job.
In general, incapability to work insurance is on average cheaper than other insurances, especially when it is taken out for a healthy person without serious pathologies.
In any case, before taking out this type of insurance, it is worthwhile to review in-depth the insurance products that we already have in case this coverage is already covered by one of them.