ECON - Ch14.3 - Health, Disability, and Life Insurance - Section 3 - Disability Insurance

What is an ideal amount you should get from disability insurance?

70 to 80 percent of your wage income.

How long must a person wait until the disability payments start?

Between one and six months.

Why is disability insurance important?

It will pay cash benefits when you become disabled and cannot work any longer.

What are two trade-offs that you might have to make when choosing among good private disability programs?

Waiting or elimination period; duration of benefits; amount of benefits.

What are two situations that you might need disability insurance income?

When hurt on the job or permanently disabled.

What are three main sources of disability income?

Worker compensation, social security, private income insurance.

Disability income insurance

provides regular cash income when an employee is unable to work due to pregnancy, a non-related work accident, or an illness.