Disability insurance is that form of health insurance that offers income payments to the income earning insurer on the event of termination or interruption in the income due to illness, sickness, accident etc
In simple terms, when the insured is unable to work, owing to some reasonable factors such as accidents, illness etc, he will be paid an income by the disability insurance. In this way, the income of the family will not be affected especially if the insured is the only wage-earner.
Disability insurance is that product of insurance which is designed to restore anywhere from 45-60% of the gross income of the insured in a tax-free basis. Thus the illness does not prevent an income earner from earning out of his occupation. But the disability insurance policy of one insurance provider differs from that of another. So making a knowledgeable decision in choosing the right insurance is imperative.
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