Disability Insurance

Cover that replaces part of your income if illness or injury stops you working.

Disability insurance pays a percentage of earnings — commonly around 60% — when a covered condition prevents work, either for a set period or until retirement age. It is chronically underheld relative to life cover, even though the probability of a long working-age disability is higher than that of dying young. Definitions matter enormously: whether a policy pays when you cannot do your own occupation or only when you cannot do any job changes its value completely.

Her disability insurance replaced most of her salary during the year she could not work.