Excerpt from Term Paper:

...... Disability insurance ensures the insured will maintain an income should a disability occur that prevents them from working. The disability may occur from illness or injury, and insurance coverage may be purchased to cover a temporary period or for a lifetime. As best-selling author, Stephen Pollan, notes, protecting one's income stream is at least as important as insuring one's life. This is especially true due to the fact that there is a high probability that disability will come before death. This is different from the limited coverage provided by most employers. Premiums vary depending on how long the insured agrees to wait before applying for benefits. Typical waiting periods are 30, 60, 90, or 120 days, and income is usually limited to a maximum of 60 percent of salary (Make the most, 2007). However, this income is non-taxable since the taxes were paid up front. This is in contrast to disability insurance that is paid by an employer, which is taxable. A personal disability policy should cover the insured's own occupation, should they not be able to perform their chosen profession any longer. As Pollan demonstrates, If a dentist becomes disabled, he shouldn't have to go to a restaurant

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