Disability Income Insurance
What Does Disability Income Insurance Mean?
Disability income insurance is a form of insurance that provides the insured with supplementary income equal to a percentage of their normal income before they become disabled. This benefit only kicks in when a person becomes disabled and can no longer work in the manner that they were doing before. There are both public and private options for disability income insurance.
Insuranceopedia Explains Disability Income Insurance
Disability income insurance exists to serve as a hedge against complete lack of income in the event a person becomes disabled. Some injuries, such as a broken spine, an amputated limb, traumatic brain injury, and so on, may be permanently disabling. Individuals who get these types of disabilities may need disability income insurance in perpetuity. For injuries that occur on the job site or as a result of work-related tasks, individuals may also be able to receive workers’ compensation benefits.