Disability Insurance

Disability insurance [Disability Income insurance, or Income Protection] 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 his work. It encompasses paid sick leave, short-term disability benefits, and long-term disability benefits.

Individual Disability Insurance

Those whose employers do not provide benefits, and self-employed individuals who desire Disability coverage, may purchase policies. Premiums and available benefits for individual coverage vary considerably between companies, occupations, states and countries. In general, premiums are higher for policies that provide more monthly benefits, offer benefits for longer periods of time, and start payments of benefits more quickly following a Disability claim. Premiums also tend to be higher for policies that define disability in broader terms, which means that the policy would pay benefits in a wider variety of circumstances. 

Business Overhead Expense Disability Insurance

Business Overhead Expense (BOE) coverage reimburses a business for overhead expenses should the owner experience a disability. Eligible benefits include: rent or mortgage payments, utilities, leasing costs, laundry/maintenance, accounting/billing and collection service fees, business insurance premiums, employee salaries, employee benefits, property tax, and other regular monthly expenses.

Employer-supplied Disability Insurance

One of the most common reasons for disability is on-the-job injury, which explains why the second largest form of Disability insurance is that provided by employers to cover their employees. There are several subtypes that may or may not be separate parts of the benefits package: workers' compensation and more general Disability insurance policies. 

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