How to Insure Your Income: The Mechanics of Disability Income Insurance Introduction

There are two basic types of individual disability income insurance -- traditional your occupation type coverage and residual policies.

Traditional coverage relates policy benefits to the inability to perform functions or duties of an occupation. Residual disability income, which came into being in the 1970s, relates benefits to loss of income due to a disability.

We'll first explore the traditional policy, then we'll consider the residual policy.