“Disability Insurance” is designed to pay an income to a person who cannot work because of illness or accident. It is also known as “Income Replacement” insurance. There is a great range of policy contract wording in the Disability Insurance world, and this type of insurance should be selected based on contract wording and not on premium cost.
In addition to replacing income in the event of disability, other types of “Disability Insurance” are available to pay office expenses if a professional is disabled, pay bank loans in the event of disability, or fund the purchase of shares from a disabled business partner.