Disability Provisions Definition
The Dictionary of Insurance Terms and Definitions
Life insurance policies can provide disability income insurance coverage in addition to ordinary life insurance coverage. Disability provisions are a clause in your life insurance contract which adds disability insurance coverage to your policy.
Having disability income insurance coverage means that the insurance company will pay a benefit if you (or whoever your insured is) become unable to carry out your occupation because of a disabling injury or illness for a certain duration. The disability need not be permanent, but it must prevent the insured individual from working for at least a certain minimum duration (which varies by policy).
The benefit you are paid is not likely to be identical to your life insurance policy's death benefit. Rather, disability income insurance tends to be issued as a series of payments in order to mimic the income stream that people forego when they become disabled. Disability income benefits tend to terminate after a certain duration (which varies by policy), even if the insured is still disabled, so learn what the limitations of your policy are.
You may already have some disability insurance coverage through your employer or through the state. Compare it to your current income or your current expenses. Is your coverage adequate?
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