Title: Disability Income (DI) Insurance: Overview
Headings: Disability Income (DI) Insurance
Disability Income (DI) Insurance
What is Disability Income (DI) Insurance?
Understanding Disability-Income (DI) Insurance
Key Takeaways
The Cost of Disability Income Insurance
Disability Income Insurance Waiting Period

Content: Disability Income (DI) Insurance: Overview
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Disability Income (DI) Insurance
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Julia Kagan has written about personal finance for more than 25 years and for Investopedia since 2014. The former editor of Consumer Reports, she is an expert in credit and debt, retirement planning, home ownership, employment issues, and insurance. She is a graduate of Bryn Mawr College (A.B., history) and has an MFA in creative nonfiction from Bennington College. Learn about our editorial policies
Julia Kagan
Updated Aug 8, 2019
What is Disability Income (DI) Insurance? Disability income (DI) insurance provides supplementary income in the event an illness or accident results in a disability that prevents the insured from working at their regular employment. Benefits are usually paid monthly so the insured can maintain a comparable standard of living and pay recurring expenses. Understanding Disability-Income (DI) Insurance
​​​​​​​Disability income (DI) insurance is designed to replace between 45% and 65% of the insured’s gross income on a tax-free basis. Some policies include bonuses and commissions as income. The benefits are tax-free because the policyholder used after-tax dollars to pay premiums.