Disability Benefit

What Does Disability Benefit Mean?

A disability benefit refers to payments made by an insurance company to a disability insurance policyholder, providing a source of income while they are disabled. This benefit is distinct from income received through workers’ compensation.

Insuranceopedia Explains Disability Benefit

Disability insurance policies provide financial protection for policyholders against the risk of becoming disabled. Whether the disability is short-term, long-term, or permanent, these policies offer regular payments to the policyholder, typically as a percentage of their original income or another specified amount based on the policy terms. Since disability often prevents individuals from working or significantly limits their ability to work, disability insurance offers a means to maintain income while disabled.