If you are looking for ways to protect yourself from a financial disaster that could come with a serious accident, disease or other income threatening event, one of the most comprehensive ways to assure that you are covered is by investing in permanent health insurance coverage.
Income Loss Does Not Have to Paralyze You Financially
It can be hard to imagine what would happen if suddenly we were unable to pay our obligations such as our mortgages, rental payments, car notes and utility bills due to an unforeseen accident or illness. People who are in the habit of protecting themselves and all of their assets as a way of life understand that having a plan to fall back on in case of an emergency is the only way to survive times like these. For this reason, they know the value of having permanent health insurance on their side to protect their income during these trying times.
Unlike other forms of insurance that only pay for expenses like doctor visits, hospitalization, and prescription medications, permanent health insurance pays out a direct monthly benefit that replaces a set amount of the policyholders lost income. The amount that your permanent health insurance policy will pay out depends largely on the policy benefits that are determined when you set it up. In most cases, people have the ability to insure up to sixty-five percent of their total gross earnings.
Long-Term Illness Does Not Have to Result in Losing Your Home
When you are unable to work, there are so many things to worry about. Of all of them, probably the biggest fear is that without an income you will fall behind on your mortgage payments and go into foreclosure proceedings. If you are the sole provider for your family or you live alone, permanent health insurance can help you stay current on your important bills. It is bad enough to have to face incapacitation and unemployment caused by long-term illness or an injury. While you may have to work a little harder to make your monthly budget work on the reduced amount of funds that your permanent health insurance provides, you should have enough money to meet your monthly obligations.
This comprehensive insurance policy will pay benefits to the original policyholder from the time the initial claim was made until the covered person goes back into the workforce, or the policy term ends. In some cases, this can be up until retirement age, so having this encompassing insurance in place all through your prime employment years is a smart way to protect everything that you have worked so hard to amass over the years.
Available to Self Employed Workers
People who are self-employed have to take extra precautions to assure that if they have an unfortunate event take place in their life, they have a way to fund their lifestyle until they are able to get better and get back on their feet again. Luckily for them, there are no restrictions that prohibit self-employed people from qualifying for the income protections that permanent health insurance provides them. If your business requires you to take significant risks or puts you in a position where you could be injured in the course of your duties, you can rest easier knowing that if something happens to you, you will still have a way to pay your bills and have time to rest and recover.
Get the Policy before You Need it
Since you never know when an accident or long-term illness can be expected, it is always a good idea to get your policy as soon as possible. Most permanent health insurance policies come with the stipulation that there is a deferred period. During this deferred period, which is defined by the stipulations of your policy, no claims can be made for the payout. For instance, if you were to take out a policy today, but the policy says there is a deferred period of one year, and you get injured two months from now, you will not be able to make a claim and receive benefits. However, if you get the policy today and get injured one year and two months from today, you would then be able to collect the benefits as they are written in your insurance policy. In many cases, it is not uncommon to see this coincide when employer-sponsored sick pay ends.
People who are self-employed will want to set their deferment period to the shortest time possible since they do not qualify for sick pay from an employer. The chances are good that you will need to pay a higher monthly premium in order to have a shorter deferred period, but should anything happen, your coverage will kick in sooner than had you not paid the extra premium for it.
What Happens if You Need to Make a Claim
In the unfortunate event that you lose your income due to a health problem or a serious injury, you will need to make a claim in order to collect your benefits. Prior to making an official claim, it is a good idea to speak with your doctor or other healthcare professionals to get their opinion on your illness or injury. If they tell you that, it will be some time before you will be able to resume your regular life. If they confirm that you will require a substantial amount of time off of work, you should then contact your insurance agent or company.
If you are out of the deferred period, the company should work pretty quickly to process your claim.
When your claim is approved, it should not be too long until you get your first benefits check. There are no restrictions on what these funds can be spent on, so these monies can be spent anyway that you would like, whether it be to make your house payment or to pay for your child’s first semester at college.