Disability

Insurance that pays a periodic (usually monthly) income benefit, or a lump-sum, to the beneficiary (usually the life insured), provided the life insured meets the policy definition of “disabled” and is unable to work due to illness or injury. The benefit is payable for the duration of the disability or for the benefit period described in the policy, whichever is less.

• Short-term Disability: Coverage that pays and income after seven days of a sickness on the first day, if the disability results in hospitalization or is due to an accident.
• Long-term Disability: Coverage that pays an income usually starting after any weekly indemnity or unemployment insurance disability benefits have run out and continuing to normal retirement age.