Disability Insurance, often called DI or disability income insurance, or income protection, is a form of insurance that ensures 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.
Is Your Income Protected if You Become Disabled?
You likely have life insurance. You know that your family will be okay should your life end prematurely. But what if you become disabled? There’s a good chance that you don’t have sufficient resources or insurance to replace lost income if you find yourself unable to work. Most Americans fail to consider the ramifications of short or long-term disability.
If you’re self-employed, the likelihood that you have sufficient disability protection is even less. Disability insurance is pricey, yet imperative, unless you have the financial resources to survive without an income for an extended period of time.