Disability
Disability Insurance
Replaces part of your income if you can't work due to illness or injury.
What it actually means
Disability insurance pays you a portion of your income (commonly 50–70%) if a covered illness or injury keeps you from working. Short-term policies typically cover weeks to months; long-term policies can cover years or until retirement age.
Example: A long-term disability policy might pay $3,000/month if a back injury keeps you out of work for two years.
See it in context
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Related terms
Short-Term DisabilityLong-Term DisabilityOwn-Occupation Definition