Disability insurance pays benefits when you are unable to earn a living because you are sick or injured. Like all insurance, disability insurance is designed to protect you against financial disaster. Most disability policies pay you a benefit that replaces part of your earned income (usually 50 to 70 percent) when you can't work.
Why would you need disability insurance?
Your chances of being disabled for longer than three months are much greater than your chances of dying prematurely. One reason for this is that medicine has made many illnesses and injuries treatable and life sustaining which previously had life ending consequences. Although this is great news for us all, it increases your need to protect your income with disability insurance.