Disability Insurance

Disability Insurance, often called DI or disability income insurance is a form of insurance that insures the beneficiary's earned income against the risk that a disability creates a barrier for a worker to complete the core functions of their work. For example the inability to focus or maintain composure as with psychological disorders or an injury, illness or condition that causes physical impairment or incapacity to work.

The ability to earn an income is most important financial asset. If that ability is taken away they will not be able to sustain their standard of living or repay their debts. Likelihood of person age < 65 getting disabled is greater than likelihood of person dying during the same time.
Payments may last 6 months, 1, 2, 5 years or to age 65 or 70

Elimination Period

Depend upon the choices available. But the most common are 0, 30 or 120 days.

Exclusions

• Acts of war
• Suicide or attempted suicide
• Intentional injury
• Illegally obtained drugs
• Impaired driving as defined in jurisdiction
• Normal pregnancy (complications due to pregnancy are covered)
• Disability caused by elective surgery
• Dental accidents caused during dental treatment
• Injuries sustained performing criminal acts
• Plane accidents other than as fare paying passenger