14.1 The Purpose of Disability Coverage
The need for disability income is often overlooked. People typically associate insurance with life insurance, health insurance, and even annuities and forget this very large category in which many people have found themselves destitute. Disability insurance is financial protection if disability strikes; and according to statistics, it is more likely for a person to incur a disability or illness during working years than death. A disabling accident is considered external and violent in nature.
Disability insurance provides an income stream if an individual is unable to continue working for a period of time due to a disabling accident or illness. In order to qualify for disability benefits, the individual must be at least 20% disabled.
Disability can be defined as the inability to pursue an occupation because of physical or mental impairment, but does that necessarily mean ANY occupation?
