| There are Short Term Disability Insurance and | | | | Life Insurance, as widely known, helps the |
| Long Term Disability Insurance coverage. The | | | | survivors of a family with the financial |
| Short Term Disability Insurance, as the name | | | | means to cope with the death of one of its |
| indicates, provides substitute income for | | | | members. The beneficiaries nominated for this |
| short durations. When you undergo a major | | | | purpose receive the insurance amount upon the |
| surgery or prolonged medical treatment for | | | | death of the insured person. Life insurance |
| any ailment, you suffer loss of earnings as | | | | provides a fixed sum of money to the |
| you are unfit to work. By opting for this | | | | beneficiaries upon death of the insured. It |
| insurance, you can supplement the income gap | | | | is intended to replace the deceased's loss of |
| for that period. Till you become alright and | | | | current and some future income, and may also |
| return to work, you can stop worrying for | | | | be useful in estate planning. |
| money needed for every day expenses. | | | | |
| | | | Beneficiaries will receive payments whether |
| The Long Term Disability Insurance similarly | | | | the insured dies of natural or accidental |
| offers substitute income for long period | | | | causes. AD&D insurance provides a lump sum |
| maybe even up to a person's retirement age. | | | | payment if death or dismemberment is the |
| This insurance is understandably meant for | | | | direct result of an accident If the insured |
| more prolonged periods of incapacity to work. | | | | has both life and AD&D insurance and dies as |
| Critical injuries as a result of road | | | | the result of an accident, both covers are |
| accident could mean several months of | | | | paid to designated beneficiaries. Life |
| inability to resume work. The long term | | | | insurance may also play a role in estate |
| insurance is more focused in eliminating your | | | | planning, or in choosing retirement income |
| concerns about how to pay your bills over | | | | options, depending on the health of the |
| many months or even years. This insurance can | | | | employee and his dependents. Life insurance |
| also help fill the void before a person can | | | | should be viewed in the overall context of |
| qualify for social security disability. | | | | the individual's total financial plans. |
| | | | |
| Yet another type of insurance is Accidental | | | | As regards beneficiaries, you can name more |
| Death and Dismemberment Insurance (AD&D) | | | | than one person as your beneficiary. However, |
| which additional benefits if death has | | | | you must designate the same beneficiaries for |
| occurred due to an accident or if the insured | | | | Basic Life, Optional Life and AD&D. The Life |
| has suffered accidental loss of a limb or | | | | Insurance premium is determined by your age, |
| eye. Accidental death and dismemberment | | | | whether you are a smoker, your gender, the |
| insurance pays you or your beneficiary when | | | | amount of cover you require and the number of |
| you are injured or die in an accident. The | | | | years it is required. There is a guarantee |
| plan pays varying amounts depending on the | | | | that the amount you pay will not increase |
| extent of injury. For example, the full | | | | throughout the tenure for which you are |
| benefit is paid if you die in an accident. If | | | | covered unless you choose the Inflation |
| you lose a hand or a foot, 50% of the full | | | | Option. |
| benefit is paid. AD&D insurance also provides | | | | |
| a lump sum payment if death or permanent | | | | Peter is a Copywriter of hr management |
| disability is the direct result of an | | | | california He written many articles in |
| accident. | | | | various topics. |
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