What is Disability Insurance and How to Qualify for One

While medical, dental, and vision coverage are all commonplace, not many know there are insurance policies designed to replace a portion of employees’ income if they become ill or disabled and can not continue to work as a result. Disability is a risk every worker faces at some point in their lives, regardless of their occupation. And when someone can not work due to it, they also risk losing their income.

Accordingly, obtaining disability insurance is one of the most viable ways to safeguard a portion of your income and maintain your way of life in the event where you suffer a long-term illness or disability and lose your ability to earn.

What is Disability Insurance?

It can be extremely hard to make ends meet when life throws you a curveball. An income loss is one of the most stressful and frustrating moments one can come to face in their life. As the name suggests, disability insurance is a policy that protects against income loss and provides support to workers by covering a portion of their income if they are unable to work because of a disability. The scope of disability insurance extends beyond accidents and covers maladies like cancer, heart disease, arthritis, and more.

In Australia, people obtain disability insurance from the government under the National Disability Insurance Scheme (NDIS). Unlike workers’ compensation insurance, which only provides benefits if employees get hurt on the clock, disability insurance covers the expenses when employees suffer an illness or disability away from work and can not continue working.

Why Do You Need Disability Insurance?

Whether it is an accidental slip resulting in multiple fractures or being diagnosed with a sudden life-threatening illness, disability insurance is an effective backup plan to have. At the very least, it would cover your essential monthly bills if you lose your ability to earn your next paycheck.

From paying your mortgage, auto loans or utilities, to college or childcare expenses, having a solid disability plan will protect your flow of income stream while recovering to cover these expenses as long as you are away from the workplace.

There are many ndis registered services providers that provide disability support and services to those in need. As mentioned by a ndis provider Perth, they help clients determine whether they can access the government-sponsored disability services and obtain funding for their condition under the ndis by helping with the application process.

How to Qualify for Disability Insurance?

There are several conditions that an applicant must satisfy before they can receive support under the ndis. To access government-sponsored disability payments, you must meet their criteria for what is considered a disability.

The ndis defines disability as a condition where one requires support from a person or special equipment or assistive technology to carry out their daily activities because of significant or permanent impairment. That could be due to birth, injury, disease, or accident. Accordingly, you may qualify for disability benefits under the ndis if you have a physical or mental barrier that causes a reduction or complete loss of an ability to perform one or more of the following activities:

  • Communicating- Includes expressing needs and wants by speech or gesture, being understood by others verbally, in writing, or sign language.
  • Undertaking Mobility- The ability to move around to perform activities of daily living, getting in or out of bed, or undertaking any other activities involving the use of limbs
  • Practicing self-care- Includes activities such as bathing, toileting, feeding oneself, dressing, grooming, etc.
  • Learning- Refers to understanding or remembering information, acquiring learning new knowledge, and practicing and using new behavior or skills
  • Social Interaction- This includes partaking in social activities, making friends, and behaving within the defined limits as accepted by others
  • Self Management- It means the mental capacity to organize your life, plan and make decisions take responsibility for yourself regarding everyday tasks like problem-solving and managing finances.

Last but not least, you must be an Australian citizen and aged between 7 and 65 to access disability benefits.

No one envisions a life where we get disabled to the extent we can not work and provide for the family. No matter how healthy your lifestyle is, there is always a possibility of life taking a turn for the worse at any given moment. As per government statistics, 1 in 6 Australians, or around 4.3 million, have a disability.

Unfortunately, many workers would not be able to pay their everyday expenses if they suffer a disability. For many of those people, the presence of a solid disability plan may spell the difference between maintaining a decent standard of living or diving deep into financial insecurity.