Long term disability insurance
This Insurance is just as important as life insurance and addresses a case of illness or injury that does not allow us to work.
Disability insurance is usually purchased through the employer in executive insurance or through the pension fund.
Insurance through the pension fund is generally considered less good, but sometimes it is adequate (mainly due to price) especially if you purchase together with it a product called an insurance umbrella that helps improve the chances of approval in case of a claim.
It is recommended that the coverage for disability insurance be at least 75% of the gross salary, but following new policies issued in 2017 it is also possible to receive for a few years (up to 3 years) 100% of the gross salary in some cases.
Most disability coverages go into effect after 3 months of waiting, but there is an option to reduce the waiting time in private coverage or through executive insurance for a month of waiting, just as there are usually older policies with 6 months of waiting.
The most important terms for understanding the issue of disability insurance:
"Reasonable occupation" and "Specific occupation":
Specific occupation (recommended):
Adapted to the occupation of the insured on the eve of the occurrence of the insured event and up to 12 months before.
Reasonable occupation (less good - common in pension funds):
The ability of the insured to work in another reasonable occupation appropriate to his education, training or experience.
Insurance umbrella:
The following special appendix as a supplement to the coverage of a "specific occupation" for a member of a pension fund, where the coverage of a "disability pension" is according to a "reasonable occupation" and is therefore inferior to a coverage in the policy. It is also possible to cancel the training period of the pension fund for the duration of its existence only - up to 5 years from the date of its entry into force.
In the vast majority of cases I recommend purchasing an insurance umbrella to strengthen the chances of a successful lawsuit in the event of an incident.
Note: Section 47 of the Tax Law allows for the recognition of expenses on disability insurance as recognized expenses.
The most important thing to remember about incapacity for work is the fact that care should be taken that the coverage should be at least 75% of the gross salary
When claiming disability insurance, examine which definition the insured is in
The most common definition that exists in all pension funds is the broader definition
According to "Reasonable Occupation"
Coverage for a situation of loss of ability to work due to illness or accident, which causes temporary or permanent damage to the class
Of at least 75% of a person's ability to work in his field of occupation or in any other reasonable occupation, which corresponds to his experience,
His education and training.
It is worthwhile and recommended when it is possible to upgrade the definition to "specific occupation", the occupation on the eve of the event
With the help of the product "Insurance Umbrella", a product that complements the pension fund