Principles of Risk Management and Insurance, 13th Edition

Disability-Income Insurance

Disability-income insurance is another important form of individual health insurance. A severe disability is a major cause of economic insecurity. In cases of long-term disability, earned income is lost, medical expenses must be paid, savings are depleted, employee benefits are lost or reduced, and someone must care for a permanently disabled person. Unless you have replacement income from disability-income insurance, income from other sources, or sufficient savings, you will be exposed to great economic insecurity. Many workers seldom think about the financial consequences of a long-term disability. However, the probability of becoming disabled before age 65 is much higher than is commonly believed. According to Life ...