QUESTION

Q: What is disability insurance?

— Risk Manager

ANSWER

A: Dear Risk,

A disability insurance policy pays benefits when you are unable to work because you are sick or injured. Most disability policies pay you a benefit that replaces a percentage of your income when you can’t work due to illness or injury.

Disability insurance is not the same as health insurance, as it will not cover your medical bills. Instead, disability benefits are designed to replace a percentage of the income you lose due to your inability to work, so you can cover your basic financial needs, such as paying bills, covering household expenses, and providing for your family, until you are able to return to work.

As with most insurance coverage, disability policies can be complex and confusing. To help you consider your options and get the best possible coverage, consult with a Family Business Lawyer™. Whether you are looking for a policy for yourself or your business, we can offer you trusted advice to ensure you get the best coverage for your investment.