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Disability Insurance

A Guide to Disability Insurance Coverage

Disability Insurance is a type of policy that is tailored to protect a person’s income should he or she become critically ill or injured and, as a consequence, be unable to work for a certain time. It pays out for injury to any part of your physical body, including such vital aspects as one’s eyesight, hearing, limbs and hands, and even for mental incapacitation.

Who It Helps

All can benefit from this type of policy protection. The sobering fact is that anyone can unexpectedly become injured or sick at any moment and any place, which can then result in the inability to perform one’s employment responsibilities. This coverage is often provided to an owner of his or her own business, the self-employed, standard employees and even those who currently unemployed. It has far-reaching potential to all who carry it.

How it Works

Payout levels are determined by the choices of coverage and their levels. Policies are renewable every year and come into effect when a policyholder becomes ill or injured and is unable to perform his or her work duties. When this happens, the policyholder simply files a claim for financial compensation from the insurance provider. Payouts will be in effect until the policyholder is once again well enough to return to work.

Types of Coverage

These insurance policies are generally broken into two categories: Long Term or Short Term. The short term coverage ensures that the covered person receives a regular and significant portion of his or her normal 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 choice. With long term disability coverage one is provided income that enables the covering of necessary living costs derived from such things as sustenance (food), mortgage and car payments, wardrobe (and so on) during a longer period of illness or injury. The insurer will usually provide these payments via the policyholder’s employer with the coverage options often including rehab to help the employee more quickly get back to work.


Disability insurance can be a huge help to just about anyone, 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 coverage is so potentially invaluable.