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Consumer Guide to Disability Income Insurance

February 26, 2022  |  By: NABIP
Disability Income Insurance

What is Disability Income Insurance?

Disability Insurance is the industry name for a plan that provides for periodic payments of benefits when a disabled insured is unable to work. The insurance product is designed to replace anywhere from 45 to 65% of your gross income on a tax-free basis should illness keep you from earning an income in your occupation. Every disability policy is different and should be assessed by the consumer based on the quality of plan created for the individual’s needs and not by the cheapest disability insurance policy on the market. Many consumers do not plan for the possibility that they will be faced with a debilitating accident or illness during their working years. A professional with a family, for example, should consider disability insurance a necessity. For a consumer, it is not a required purchase like home owner’s insurance. Individuals believe they may have disability coverage through their employer. This at times may be true, but the quality of coverage often leaves the disabled employee short of the protection he/she thought they had. A qualified insurance agent can assist the consumer with exploring the sources of income the consumer will need and have available during a disability.

Additional Resources

How much does Disability Insurance cost?

What are the types of Disability Insurance policies

Find a Disability Income Agent

Questions Consumers Should Ask Their Health Insurance Agent About Disability Insurance

America's Health Insurance Plans: Guide to Disability Income Insurance

Social Security Disability Program Guide: Pays benefits to you and certain members of your family if you are "insured," meaning that you worked long enough and paid Social Security taxes.

National Institute on Aging: Resource List - Legal and Financial Issues 
Note: http://www.nia.nih.gov/alzheimers/publication/legal-and-financial-planning-people-alzheimers-disease-fact-sheet

National Alliance for Caregiving - Dedicated to providing support to family caregivers and the professionals who help them and to increasing public awareness of issues facing family caregivers. At least 44.4 million adults provide the care that is so critical in helping friends and loved ones with debilitating illnesses remain in their homes and other community settings.

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