Disability Insurance often called DI, or disability income insurance is a type of insurance which protects individual’s income against the risks of an injury, sickness and other damages which can make the person disabled to work. Typically there are two types of Disability Insurance including Long-term and Short-term, but there are other features of these policies that are good to know.
Business Overhead Expense Disability Insurance
Business Overhead Expense (BOE) coverage is designed to compensate a business for overhead expenses in case the owner becomes disabled. The eligible benefits of this coverage include real monthly expenses such as rent payments, utilities, leasing costs, maintenance, billing as well as property tax, employee salaries and employee benefits.
Employer-Supplied Disability Insurance
According to studies the top reason for becoming disabled is getting hurt during the job and that why it is not surprising that the second-most important form of disability insurance is the Employer-Supplied Disability Insurance. It is typically provided by employers to protect and cover the expenses of their employees.
Individual Disability Insurance
If you are an employee, who does do not have disability insurance provided by its employer, then you can purchase your own policies on the market. Depending on your company, position, State or Country the premiums and benefits for individual coverage can vary.
Key Person Disability Insurance
Key Person Disability Insurance provides significant benefits for any functioning business by protecting it from financial difficulties that may result from the loss of a key employee due to disability. This coverage usually helps a company to continue functioning and maintaining a profit in case a key employee becomes disabled. It can also be used to hire a temporary employee if the disabled employee’s injury is short-termed.
National Social Insurance Programs
In many developed countries, all the citizens are provided with basic disability insurance by the government. Typically these programs are big and important programs, with descent beneficiaries. Overall, the benefit is not big, but it is enough to provide protection against various economic risks (e.g., loss of income due to sickness, old age, or unemployment).