What Is Disability Insurance?

Disability insurance provides payments in the form of a portion of your income if you become sick, injured, or otherwise unable to work. Disability reimbursement can help people who rely on their jobs to cover their living expenses and other losses due to their inability to work.Definition of disability every disability policy has a specific definition of disability that a person must meet to qualify for benefits. There are also different levels of disability that can range from partial disability (short-term disability) to long-term disability.Individual disability is the kind of policy customers typically purchase through a financial representative or an insurance agency.Social security disability is a part of social security benefits. It is quite difficult to qualify for, and the benefit amount is usually lower, compared to the regular disability policy that is provided by the employer as a part of a group plan.

What Does Disability Insurance Cover?

Disability insurance cover is normally an agreement between the company a worker is employed at and the policyholder. But how can you apply for benefits in case of a disability?You can qualify for long-term benefits in case you have:

  • Back pain
  • Cancer
  • Depression
  • Diabetes
  • Heart disease
  • Stroke
  • Cancer

Other health conditions can qualify you for receiving disability benefits. Still, they vary from policy to policy, as well as the type of cover you are entitled to with your insurance plan.

How Much Is Disability Insurance?

As a rule, the prices for disability vary from 1 percent to 4 percent of your annual income, on average. Another thing to remember is that you should also expect to pay around 2 percent to 6 percent of the policy’s monthly benefit amount in premium. These factors are not the only ones that will determine the price, however. The final cost will also depend on other factors such as job occupation and your policy choice.On the other hand, the benefit amount will total about 60 to 80 percent of what a worker earned before a disability. Depending on your occupation and geographical location, the monthly premium would fluctuate between $23 to $96.