Sudden illness and serious accidents can result in the loss of income, which is critical to most people and their families.
Disability insurance provides protection against this by paying a monthly benefit when unable to work (as opposed to critical illness insurance, which pays out a lump sum of cash even if you are able to go back to work).
General Disability Insurance Features:
- Replacement income if you become ill or are injured.
- Disability insurance varies, depending on your occupation: the more dangerous your job, the higher the premiums and limitations.
- The amount of coverage usually can’t be more than 2/3 of your current earnings
- The paid benefits from an insurance claim is tax free .
- Benefit period can vary, anywhere from 2 years, up until the age of 65.
- After 65 coverage may continue, although the insured must continue to work. Coverage may be modified.