Disability insurance replaces a portion of your income if you can’t work due to illness, injury, or other medical conditions, acting as income protection for your most valuable asset—your earnings.

You (or your employer) pay regular premiums to an insurance company.

When you become disabled and can’t work, you file a claim.

Benefits don’t start immediately; you must wait a set period after the disability begins. This is called the Elimination Period and can be anything from 7 to 180 days depending on the policy.

After the waiting period, the insurer pays a monthly amount, usually about 60-80% of your salary.

Payments continue for the benefit period defined in your policy, which can be months (short-term) or years (long-term), until you recover or the policy term ends.