What is the definition of Disability Income Insurance?

Disability Income Insurance refers to a kind of health insurance that pays a regular income to a person once he is declared disabled because of an illness or an accident. This is designed to provide the insured at least a portion of his lost income.

There are certain limits to the payments. There is usually a waiting period - a specified period starting from the first day of the disability which will have to pass before payments are made. These payments also shall not be more than 50% to 80% of the earnings of the insured person before the disability.

The payments from the Disability Income Insurance will pay for the benefits for the period that the insured is disabled. However, after one or two years, the insured must agree to undergo retraining for jobs that he can do.

There are also some policies that pay for partial disablement.

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