Disability Insurance

Policy TypeHealth

Income protection replacing typically 60 percent of salary if injury or illness prevents working.

Overview

Employer group plans are common and cheap but often cap monthly benefits, cover own occupation only briefly, and vanish with the job. Individual policies are portable and definable: own occupation wording pays if the insured cannot perform their specialty, a critical feature for physicians and lawyers. Key terms include the elimination period before benefits start, 90 days is typical, the benefit period to age 65 or shorter, residual riders for partial disability, and cost of living adjustments to protect long claims against inflation. Social Security disability exists but denies most initial claims and pays modestly, which makes private coverage the primary tool for income continuity.

Related Topics