DELAWARE INSURANCE DEPARTMENT

Disability Insurance

Disability Insurance pays periodic payments, weekly or monthly, for a specified period if you are disabled and cannot work. Some policies pay only if you are sick, others pay only if you have an accident, and some pay benefits in either case. A disability policy includes an elimination period -- a certain number of days you must be disabled before payments begin. The longer the elimination period, the lower the premium you will pay.

If you buy a disability policy, read the policy's definition of disability to be sure you know what the insurance company considers a disability and what requirements must be met for payment. The amount of weekly or monthly benefits may be stated as a percentage of income or as a set dollar amount. The amount of benefit for which you can qualify is usually limited to a percentage of your income.

Many employers provide some form of disability insurance to their employees through a group insurance plan. Or, your union contract may include some sick leave benefits. And, workers' compensation is available if you are injured on the job. Be sure to find out about these benefit alternatives before you buy individual disability insurance.