Disability Insurance is a kind of policy that is designed to protect your income should you become critically ill or injured and, as a consequence, unable to work. It has coverage for injury to any area of your physical body like eyesight, hearing, legs or hands, even mental incapacitation.
Practically anyone can benefit from this kind of policy. The reasoning behind that statement is quite simple, namely anyone can become injured or sick at any time leading to the inability to perform their work duties. This kind of coverage applies to the owners of business, those who are self-employed, employees and even those who are out of work.
Payout amounts vary in tandem with the offered levels of coverage. Each policy is renewable each year. Should one be stricken with an illness or become injured and, as a result, no longer be able to perform work duties, one can file a claim for financial compensation from the provider. The extended payouts continue until you are well enough to again resume work as per normal.
There are generally two kinds of disability insurance policies: Short-Term Disability (STD) and Long-Term Disability (LTD). STD policies have waiting periods of up to 14 days with a maximum period of benefits going no further than two years. LTD policies will usually have a waiting period of a few weeks up to several months. The maximum benefit period ranges from a three or so years up to the rest of your remaining lifetime.