1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Disability insurance pays you a benefit when you can't work because of illness and/or sickness. it's fundamentally paycheck protection. Generally speaking non deductible disability premiums generate tax free benefits after the waiting or elimination period is completed. When you consider that most working Americans do not have sustainable cash reserves to weather a periods of disability, the protection becomes valuable.
    Answered on August 22, 2013
  2. 63333 POINTS
    Peggy MacePRO
    Most of the U.S.
    Disability insurance is used to replace part of the income lost due to becoming disabled for an extended period of time. The benefit from a disability insurance policy is paid as cash to the insured, to use to pay for the expenses they desire to use it for. There is no stipulation that it be used on health related expenses.
    Answered on August 22, 2013
  3. 63333 POINTS
    Peggy MacePRO
    Most of the U.S.
    Disability Insurance is used to replace the wages an employee loses by being unable to work due to illness or injury. After a set period of time (usually, three months, for long term disability insurance) payments are made directly to the insured person from the insurance company. Depending on the features of the policy, these payments might be made for years or for life; until the Insured is able to work at all, or is able to work again at his/her own job.
    Answered on July 16, 2014
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