Disability insurance is designed to provide the policyholder with a stated amount of periodic income in the event that he or she cannot work due to a disabling illness or accident. Benefits paid under a disability policy are received by the insured in the form of weekly or monthly income payments.

Unlike life insurance, insurance companies typically place a limit on the amount of disability income protection any one person can apply for, defined in terms of a maximum percentage of a person's salary
or wages.

Types of Disabilities

Before benefits under a disability policy are payable, the nature of the disability must be determined: Total, Partial or Residual.

Total Disability
Total disability is defined as the insured's inability to engage in an occupation for wage or profit for which he or she is reasonably suited by reason of education, training or expertise. What constitutes "total disability" varies from policy to policy; in some cases, "any occupation" is replaced by "own occupation" in determining whether
a disability is a total disability. The "own occupation" definition of total disability requires that the insured be unable to work at his or her occupation as a result of accident or injury.

Partial Disability
Partial disability refers to an insured’s inability to perform one or more of the important duties of his or her job. The maximum duration that partial disability benefits are paid is usually three to six months.

Residual Disability
Residual disability covers the amount of income the policyholder cannot earn, when back at work, because of disability. The benefit is typically based on the proportion of income the insured has actually lost, taking into account that he or she is able to work and earn some income.

Disability Insurance Quote Form