Disability Income Insurance

The insured's loss of earned income while disabled — Disability income insurance replaces earned income that the insured loses when a covered disability prevents work. Its purpose is to protect the insured's ability to earn, which for most people is the most valuable asset they own. Losses of investment value, paid premiums, or credit standing are not the risks that this product is designed to address, and coverage is measured against the income the insured would have earned but for the disability.

National insurance concept

A hazard that increases the chance of loss — A hazard is a condition or activity that increases the probability or severity of a loss. Motorcycle racing is a hazardous avocation: it significantly increases the applicant's chance of suffering an injury that could trigger disability benefits. Underwriters respond by rating the risk, adding an exclusion, or declining coverage. The racing itself is not the cause of a particular loss (that would be a peril), and it is not the loss itself — it is a risk factor that makes the loss more likely.

National insurance concept