One major risk that individuals face in their lifetime is the possibility that they will become totally disabled and be unable to perform work duties for a period of time. Statistics show that there is a 50% chance of a 25-year old being disabled for more than 90 days prior to age 65. It is far less likely that the same 25-year old will suffer a premature death prior to age 65.

For most people who are unable to go to work, employment income would terminate after a brief period of time. Consequently, most people would be forced to turn to personal savings to pay normal living expenses such as food, rent and utilities. One should ask how long he or she could survive without any income.

Disability income insurance is designed to replace lost income in the event of this contingency, and is a vital component of a comprehensive insurance program. It may be purchased individually or through an employer on a group basis.

Inability to Perform Duties:

-Own Occupation

  • Provide benefits when the insured is unable to perform any duties of his/her occupation because of sickness or accident.

-Any Occupation

  • Only provide benefits when the insured is unable to perform any of the duties of the occupation for which they are suited by reason of education, training, or experience.

-Presumptive Disability

  • Provision found in most DI policies which specifies the conditions that will automatically quilift the insured for full disability benefits. Provides a benefit for dismemberment (the loss of use of any two limbs), total and permanent blindness, or loss of speech or hearing

-Requirement to be Under Physician Care

  • Most DI policies require that the insured be under the care of a physician and possibly confined to the house in order to receive benefits