Disability Insurance

The Ins and Outs of Disability Insurance


Disability Insurance is a type of policy protection designed to safeguard a person’s income should he or she ever be stricken with a critical illness or injury and, as a result, be unable to function on the job for a certain length of time. It compensates for injury to any part of the physical body, including such vital components as eyesight, hearing, limbs, mental incapacitation and more.

Who Needs It

All can reap great benefits from this type of policy protection. It is important to keep in mind that all can unexpectedly become hurt or sick at any time, which can mean the inability to perform employment duties. This coverage is often provided to owners of their own business, the self-employed, normal employees and even those presently not employed.

How it Operates

The amount of payout is determined by the kinds of coverage chosen by the policyholder. Plans are renewable per annum and come into effect when the covered person becomes ill or injured and is unable to perform his or her job duties. When this occurs, the policyholder files a claim for financial payment from the insurance company. Payouts will be in effect until the policyholder is once again well enough to return to his or her employment responsibilities.

Kinds of Coverage

This coverage is generally broken into two categories: Long Term or Short Term. The short-term coverage helps a covered person to receive a regular and notable portion of his or her normal income within the first few weeks of either an illness or injury. The payment duration will range between three months and an entire year depending on the coverage chosen. With long term disability coverage, one is enabled his or her income to handle necessary living costs derived from such things as food, mortgage and car payments, clothing (and so on) during a longer period. The insurer will usually offer these payments via the policyholder’s employer with the coverage options often including rehab to help the worker more quickly get back on the job.


Disability insurance can be a big help to just about all no matter the employment status. A normal worker is likely to become disabled before reaching 65 years of age and this is exactly why this coverage can be so helpful.