DISABILITY INCOME INSURANCE

Disability Income Policies also known as "DI" or "Replacement Income", help protect an individual or business from the financial troubles that can result from an illness or injury by replacing the income lost when the insured is totally disabled which results in not being able to work.

TYPES OF DISABILITY INSURANCE:

Looks familiar? These are common  types of coverage an employer provides, most times free of cost to the employee.

Two types of DI :

• Short term disability insurance policies offer a worker a portion of their salary if they are unable to work for a short period—typically three to six months.

• Long term disability insurance offers a worker a portion of their salary if they are unable to work for a longer period—typically a period of over six months.

Costs of Disability Insurance

The price of a disability insurance policy depends on the length of the elimination period, the benefit period (how long a person is able to receive the disability benefit), and how strict the definition of disability is under the policy. Each policy can have its own definition of what qualifies as "disabled," so it is important to understand these rules before buying a policy.