Disability Insurance
There is a 1 in 3 chance that you will get hurt or sick and be unable to work. Disability Insurance helps you make ends meet if you can’t earn your regular paycheck. You and your family can live life as usual until you’re back at work. Be prepared for the unexpected.
Disability insurance typically provides disability income benefits that begin at the end of a specified waiting period and that continue until the earlier of the date when the insured person returns to work, dies, or becomes eligible for pension benefits.
Disability insurance exists to replace income in the event of total or in some cases partial disability, due to accident or illness.
The variations in policies come in the form of waiting (elimination) periods and length of coverage. The waiting period is the amount of time you must wait before benefits begin. Typical waiting periods include 30 days, 3 months, 6 months and 1 year. This is equivalent to a deductible. The length of coverage can vary from 2 years, 5 years, to age 65 or in some cases lifetime.
The best definition of disability for the purposes of disability insurance would include the inability to perform the duties of one's occupation. Disability insurance protects against this loss of income in the event of this inability.
Age, occupation, waiting period, coverage amounts and coverage length all contribute to the determination of policy costs.
