Understanding Disability Insurance: A Safety Net for Life’s Uncertainties
Life is unpredictable, and no one knows when an illness or injury might prevent them from working. This is where disability insurance steps in, offering a financial lifeline when you are unable to earn a paycheck due to a disability. Whether it’s short-term or long-term, disability insurance ensures that you can meet your financial obligations when you’re unable to work. Let's dive into what it is, how it works, and why it's essential for anyone who relies on their income to make ends meet.
What Is Disability Insurance?
Disability insurance is a type of insurance policy that provides income replacement if you are unable to work due to illness or injury. It covers a portion of your salary, typically ranging from 40% to 70%, depending on the policy. There are two main types of disabili...