Individual disability income insurance pays you benefits if you can't work because you're sick or injured. Some individual policies pay partial benefits if you can only work part-time due to sickness or injury.
Individual policies specify how much you will be paid, how soon after you are disabled benefits will begin, and when benefits will end. Policies generally provide replacement of 50 to 70 percent of income. The length of time for which you may receive benefits may depend on whether accident or illness caused the disability.
If you purchase an individual disability income insurance policy for yourself, and pay premiums with after-tax dollars, if you do end up becoming disabled, the benefits you receive are generally tax free.
DISABILITY INSURANCE INFORMATION
- How can I insure against loss of income?
- What are the types of disability insurance?
- How can I purchase disability insurance?
- How are disability premiums determined?
- How can I save money?
- Will my employer provide disability coverage?
- Where can I get more information?
FACTS AND STATISTICS: DISABILITY INSURANCE
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