Personal Finance 1st Edition by Jack R. Kapoor

Exercise 24

1 What is disability income insurance?

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2 What are the three main sources of disability income?

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3 How can you determine the amount of disability income insurance you need?

Action Application List the benefits in your employee benefit package, such as health insurance, disability income insurance, and life insurance.

Step 1 of 3

1) Disability income insurance:

It provides a regular cash income lost by an employee because of an accident or any illness. It is the most negligent form of insurance policy. Generally, disability causes more financial losses than death to an individual and his/her family. Huge expenditure will be incurred to treat the patient after disability and the family living expenditure and other expenditure will continue to incur. Disability insurance will provide a regular income to the individual and family in order to run their life without any financial problem.