Disability Insurance
Throughout much of your life, the chances that you will become disabled are greater than the likelihood of sudden death. However, many more people have life insurance policies than have disability policies.
Unlike a life insurance policy, which is primarily designed to provide a lump sum payment in the event of death, a disability policy provides income to an individual who becomes disabled because of an accident or illness. There are many kinds of disability policies that differ on how liberally or restrictively they define disability, how much periodic income they pay, how long you have to wait (called the "elimination period") for payments to begin, and how long payments will go on.
The major considerations in disability coverage are:
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