Disability Insurance

Understanding Disability Insurance


Without one’s regular paycheck it can be struggle to survive and the question arises as to how much time will elapse before he or she can no longer manage to pay bills, like a mortgage, utility and credit cards, or if one can still purchase food and so on. Disability Insurance is a kind of policy protection that is designed to safeguard a person’s income should he or she become critically ill or injured and, as a consequence, be unable to be employed for a certain time. It pays out for injury to any part of your physical body, including such things as eyesight, hearing, limbs and hands, and even for mental incapacitation as well.

Who It Helps

Some disability insurance policies will compensate for part or even all of a worker’s salary. Statistics show that about a quarter of workers will become disabled at some point in their working life. The disability can be the result of injuries or job accidents, including illnesses such as heart disease or cancer.
All can be helped by this type of policy protection since anyone can unexpectedly become injured or sick which can then result in the inability to perform one’s work duties.

Why Have Disability Coverage

Unlike many other forms of coverage for workers that come into effect when they become a particular age, disability plans will often cover 70% of an employee’s salary regardless of his or her age when the disability strikes. Some workers can be covered via an employer’s plan while others might little to no coverage. People falling into that second category can opt to buy their own policy receive the same benefits so to be protected if and when they can no longer perform their work duties as a result of injury or sickness.

Types of Coverage

These insurance policies generally come in two categories: Long Term or Short Term. The short term coverage ensures that the individual policyholder will receive a regular and significant portion of his or her regular income within the first few weeks of either a sickness or injury. The payment duration will range between three months and a full year depending on the coverage. With long term disability coverage one is given income that enables the covering of necessary living expenses for such things as groceries, mortgage and car payments, wardrobe (and so on) during a longer period of illness or injury.


Disability insurance can be a big help to just about all workers, no matter his or her employment status. A typical person is likely to become disabled before reaching 65 years of age and this is exactly why this insurance protection can be so important.