Surveys reveal that one in every three people is prone to be disabled for 90 days or more before the age of 65. Disability insurance is intended to maintain your financial stability during such adverse situations. Disability insurance provides periodic payments just like your periodic income payments when you are unable to work because of illness or injury.
Disability insurance may pay benefits for disabilities resulting from accidents only or for disabilities resulting from both accidents and/or illness. You can choose the length of the benefit period and the amount of the benefit.
Depending on the insurance company, you can claim up to 2/3rd of your regular income. But the amount of benefit cannot exceed your income as the purpose of the coverage is only to replace earned income that is lost because of a disability. It is essential especially for self-employed individuals and also individuals who do not have disability insurance through their employer.