Disability Insurance

What Does Disability Insurance Mean?

Disability insurance provides financial protection for individuals who become disabled and can no longer work as they did previously. The government offers disability insurance through the Social Security Administration. This type of insurance can provide disabled individuals with payments to replace a portion of their lost income. These payments may last for a limited period or, in some cases, may continue for the full duration of the disability.

Insuranceopedia Explains Disability Insurance

Although Social Security offers disability insurance, it can also be purchased in the private sector. Unlike the government option, private disability insurance requires the policyholder to pay out of pocket, as it is not funded by taxes.

A serious disability can result in the loss of one’s entire income. For this reason, it is beneficial to plan in advance the type of disability insurance one may wish to pursue, especially for those in high-risk occupations.