Extension Family Resource Management Specialist Disability income insurance provides financial protection against losses that may result when income cannot be earned because of illness or injury to a wage earner. It typically pays 50 to 70 percent of a worker s before-tax income.
Disability insurance is an essential, but often overlooked, part of financial protection plans.
Working-age people are much more likely to become disabled than to die. Even young workers need disability income to provide income when they are unable to work during an illness or injury. Before buying disability coverage, individuals should consider their total financial protection plan and look at other forms of disability income they may already have. Paid sick leave provides some insurance. However, it is usually limited and will not provide protection for long-term disabilities.