|
 |
 |
|
Loss-of-income Protection Enables: Income. Loss-of-income protection enables a person to receive a flow of cash benefits if his salary or wages cease due to inability to work. If a commercial policy limits coverage to accidental disability, it generally costs much less—or greater benefits can be provided—than if benefits are also paid for income loss due to illness. Not only is illness disability more frequent; it is also easier to feign than accidental disability. Generally the monthly income for accidental disability continues for life; in contrast, the income payments for illness disability may be limited to 6, 12, 24, 60, or 120 months.
If your best photographer handles passport photos when he or she could be doing something more productive, chances are the salary will be enough greater than the hourly income that you will take a net loss for the hour. With your receptionist doing this relatively simple task, the person is learning something about photography, gaining a new skill, and bringing income to the studio that will be in excess of his or her salary.
Disability income benefits in the United States are paid both by corporate insurers and by the federal Social Security program.
With rising incomes and with rising favor for this type of coverage, disability income insurance has increased rapidly in volume in the United States. It may be viewed as more necessary than hospitalization coverage. If a person returns to work after incurring heavy medical expenses, he can frequently pay off his debts from his resumed income. In contrast, if he is totally and permanently disabled and lacks insurance that will maintain a flow of income, he probably cannot pay his debts, and he also needs income to survive. |
|
|
| |
|
|
|
|
