Disability Income Insurance Law and Legal Definition
Disability income insurance is the insurance coverage for a portion of lost income when an employee is incapable of performing one or more occupational duties as a result of an illness or accident temporarily, or totally. The payment usually starts after a specific period known as elimination period.
Some policies will be in force until the person is able to return to work, or to a similar occupation, or becomes eligible to receive benefits from another program such as Social Security disability. Disability insurance payments are normally tax-free to beneficiaries as long as they paid the policy premiums. Many employers offer disability income insurance to their employees.
Legal Definition list
Related Legal Terms
- Accelerated Life Insurance Benefits
- Accident Insurance
- Accidental Death and Dismemberment [Insurance]
- Accommodation Line [Insurance]
- Accountants Professional Liability Insurance
- Accounts Receivable Insurance
- Accrued Income
- Accumulated Taxable Income
- Actual Cash Value Insurance
- Actual Delivery of Insurance Policy