Disability insurance is designed to provide a supplemental income in the case in which a person s incapacitated due to injury or illness and can no longer work at their normal place of employment. The financial benefits associated with disability insurance is normally dispensed on a monthly basis, allowing the individual to maintain some sense of normalcy. As the monthly payments are received the beneficiary will be able to pay certain bills and living expenses they would not be able to pay otherwise.
There are short term disability benefits that may last for several months or more and if the disability carries beyond a certain predetermined point, long-term disability would be necessary. Normally long term disability has a decreased payment rate.