Disability Income Guide
- Introduction
- What is Disability Insurance?
- How Do You Find Out If You Have Enough Protection?
- What Should You Look For In A Disability Policy?
- State Insurance Departments
- Insurance Counseling
Introduction
Could you continue to pay your bills if you were unable to work for any length of time because of illness or injury? If you were to become disabled, do you know how much money would be coming in each month and from what sources?
Some people can rely on disability benefits from their employers and/or the government. But, for a great many people, income stops when work stops. Individual disability income insurance is designed to replace income when illness or injury stands in the way of earning a living.
This booklet explains the various sources of disability income, what disability income insurance is, and what it covers. It includes a work sheet you can use to evaluate personal sources of disability income, as well as a checklist of policy features you can use to compare disability income insurance policies. With this information, you'll be able to make an informed decision about whether you need individual disability income insurance and, if so, what features are most important to you.
What is Disability Insurance?
Disability income insurance provides you with an income should you become sick or injured and unable to work. It helps protect against family financial catastrophe by giving you an income to meet daily expenses.
Disability income insurance comes in two major forms:
- A variety of employer-paid and government sponsored programs, generally cost-free to the recipient, covering certain categories of workers.
- Private policies (paid for by individuals) that protect income when there are no applicable employer or government programs or when those programs do not adequately meet income needs.
As with all insurance, disability income insurance operates on the principle that many people pool small sums of money to benefit those who need help. The beneficiaries are people who need adequate income should they become disabled.
