Sources of Replacement Income

When you become injured or ill and are unable to work, you will need to find ways to bring in income to support yourself and your family. Here are a few sources to replace your income:

• Worker's Compensation: Replaces part of your income and pays for medical expenses resulting from an injury or illness that is work-related only.
• Social Security Disability Benefits: Paid to workers who are expected to be disabled for a year or more, and can perform no type of occupation whatsoever.
• Employer-paid Disability Insurance: Usually a short-term group policy that replaces up to 60 percent of your salary. Some employers also offer long-term disability insurance.
• Veterans Pension Disability Benefits: Income replacement for veterans who are no longer able to work due to disability and who meet eligibility requirements.
• Individual Disability Insurance: Flexible and portable policies that cover you even if you change jobs. This insurance can replace about 70 percent of your income if you become disabled.

Sources

1. How can I insure against loss of income? Retrieved April 29, 2008, from http://www.iii.org/individuals/disability/lossofincome/
2. Sources of Disability Income Protection. Retrieved April 29, 2008, from http://www.lifehappens.org/disability-insurance/sources-of-disability-income-protection
3. Guide to Disability Income Insurance. (2004). Retrieved April 29, 2008, from http://www.ahip.org/content/default.aspx?bc=41|329|352