We protect ourselves against dying, but not against losing our greatest asset - our earning potential. To put it bluntly, when you die, you no longer have expenses. When you're disabled, you still have living expenses, now compounded by medical expenses. You've got rent or a mortgage to pay, food, car, utilities, and perhaps your children's college tuition. That's where disability insurance comes in.
Disability insurance can offer a financial safety net.
When you're unable to work for an extended period of time because of an injury or illness, it pays monthly benefits until you are well enough to return to work. Disability insurance is a type of insurance policy you may be able to get through work or that you can purchase on your own. Just as with life insurance or health insurance, you pay monthly premiums. When you become unable to work because of a disabling physical or mental reason, you are paid a certain amount each month in benefits. There are numerous types of disability insurance, from bare-bones policies to those with options galore.