So I got into an accident and I can't work. How do I earn an income?

Today's blog post is all about disability income insurance. I'm going to tell you three things you need to know before you purchase a disability income plan.

1. It pays you a Monthly Income or Benefit

The first thing you need to know about disability income or DI plan is that it pays you a monthly income or benefit in the event you're unable to work, to earn an income for an extended period of time.

Generally, we look at about six months but this may vary from insurer to insurer. So check with your provider.

2. Conditions for Claims

So the second thing you need to know about a DI plan are the conditions for claims.

Generally, there are three ways that they can define a condition for claims. The first one is your own occupation. What this means is that if you're unable to work in your own job, they will pay out the monthly benefit. The second one would be a related occupation. So if you can't work in your own job nor can you work in a related occupation, then they will pay out. And the third definition would be in any occupation. If you're unable to work in any occupation, then they will pay out.

3. You can't get More Than 3/4 of your Last Drawn Salary

So the third thing you need to know about disability income plans is that generally, you can't get more than three-quarters of your last drawn salary.

So if for example, you earn $10,000 a month. For disability income, you can only claim up to $7500 or three quarters of your last straw and salary. Now, this may vary depending on your plan or your insurer so do check with your provider.

So those are the three things you need to know before you get a disability income plan.