Disability Insurance

What is disability insurance?

 

Disability insurance, also called disability income insurance, is an insurance product that pays a monthly benefit for a certain period of time (number of years or to age 65 or even for life) in case of loss of income because of injury or illness.  

 

Then need for disability insurance becomes obvious when one examines the result to one's life and to any dependents when income stops.  In fact 46% of foreclosures come about as a result of a disability.  Based on historical statistics, about 30 percent of those  between 35 and 65 will have a disability that lasts at least 90 days while they are in their working years.

 

There are a relatively few insurance companies that offer disability insurance and even fewer that offer what is often considered the optimum combination of policy provisions.  Some of these provisions include non-cancelability and guaranteed renewability.  These mean that the policy can't change in rates and must be renewed (as long as the premium is paid).  

 

Another important policy feature that one should look for is called own occupation or your occupation definition of disability.  To simplify, this means that one would receive the insurance benefit if one could not (because of the disability) perform the duties of the occupation they were in when disabled.

 

There are other articles to come on Knol that we will write and you can find extensive information about disability insurance at the disability insurance site, protectyourincome.com