Disability Income Insurance pays a monthly benefit if you are unable to work and earn an income due to an illness or injury. There are two types of disability insurance
Disability Insurance, often called DI or disability income insurance, or income protection, is a form of insurance that insures the beneficiary’s earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work.
For example, the worker may suffer from an inability to maintain composure in the case of psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work. It encompasses paid sick leave, short-term disability benefits, and long-term disability benefits. Statistics show that in the US a disabling accident occurs, on average, once every second. In fact, nearly 18.5% of Americans are currently living with a disability, and 1 out of every 4 persons in the US workforce will suffer a disabling injury before retirement.
- Replaces a percentage of base salary and regular bonus or incentive income.
- Can cover retirement contributions and student loan payments.
- When you pay for this individual coverage with after-tax dollars, any benefit payments you receive are tax free.
- Your policy belongs to you even if you change jobs
- You may need individual disability insurance if you or your family rely on your income.
- You are a high-earning individual who needs more income protection than the coverage offered by your employer.
- You don’t have any disability insurance through work.