Disability Income Insurance replaces your income or a portion of your income in the even of temporary or permanently disability due to illness or injury. There are a number of conditions which must be met before any benefit is paid out. These conditions range from the amount or percentage of replacement income to the waiting period, also known as the elimination period. The insurance company will start making payment to the insure once the elimination has expired.
The elimination period is the time you must wait before the insurance start sending you a check. This period can range from 30 days to 6 months. Since the length of the elimination will affect your premium, insure can made a decision. however, the shorter the elimination period the higher the premium.
Disability benefit usually is about 60% of your salary, the amount is tax free and is intended to replace only your net income. Disability benefit does take in to consideration any benefit you might be entitled to from social security to ensure the combine total payment does not exceed the 60% benefit amount. The benefit period can be short term or until retirement however the longer the benefit pay out time the higher the premium.