Hospital confinement indemnity insurance

These policies pay a fixed amount or
indemnity for each day, week or month you
stay in a hospital. Such policies pay a flat
amount for benefits.
Disability income insurance
These policies pay a weekly or monthly
income for a specific period if you suffer
a disability and cannot continue or obtain
work. The disability may involve sickness,
injury or a combination of the two. Most
disability insurance plans coordinate
with Social Security benefits and workers’
compensation to eliminate duplication
of coverage.
You may select a disability policy that
includes an elimination period, or length
of time that you must wait after a covered
illness begins, before receiving benefits.
The longer the elimination period, the lower
your premium. Premiums may also vary
depending upon your occupation (and the
risks involved) and your age. For example, a
high-rise construction worker would likely
pay higher premiums than a florist.
When buying a disability policy, you should
find out the company’s definition of a
disability and the requirements that must
be met. Individual and group disability
income policies must provide coverage for
a policyholder or eligible dependent who
becomes disabled.