Disability income policies primarily deliver benefits as periodic cash payments. These payments are designed to replace a portion of the income lost due to a qualifying disability. For example, a policyholder might receive a monthly check to cover living expenses if an illness or injury prevents them from working.
The provision of income replacement is critical for maintaining financial stability during periods of disability. Historically, such policies have evolved to provide a safety net, mitigating the financial impact of unforeseen health events. Their value lies in the continued support they offer when earnings are interrupted.
