Disability income insurance is a type of insurance policy that provides income replacement benefits to individuals who become disabled and are unable to work.
Disability income insurance is a type of insurance policy that provides income replacement benefits to individuals who become disabled and are unable to work. The policy pays a monthly benefit to the policyholder, typically a percentage of their pre-disability income, to help cover living expenses while they are unable to work.
Disability income insurance can be purchased by individuals or provided by employers as part of a benefits package. The policy may be short-term, providing benefits for a few months to a year, or long-term, providing benefits until the policyholder reaches retirement age or is able to return to work.
There are two main types of disability income insurance policies: