The Insurance Buying Guide: Disability Income Insurance Is the Solution

It is clear that most people cannot rely on any of the other kinds of insurance that they may have -- or their savings or collections -- to help them through a prolonged disability. Fortunately, there is a form of insurance designed to do just that. It's aptly called disability income insurance.

Disability income insurance (also referred to as loss-of-time insurance) pays you a weekly or monthly benefit for disabilities due to an accident or sickness. The primary purpose of this coverage is to replace the loss of personal income due to a disability.

Disability income policies are issued on an individual basis -- or on a group basis, through an employer-sponsored plan, labor union or association. Benefits paid are in accordance with the policy's provisions and, to a degree, your loss of income.