Moneyadviceblog » Insurancetitle_li=Medical Insurance » How Does Disability Insurance Work?

Regardless of your standard of living, it is always important to take precautions against the various hazards of everyday life. One of these precautions is disability insurance. Its principle is that you can continue to acquire income as compensation for a loss of financial resources following the occurrence of a serious event because this prevents you from exercising a profession and ensuring a downhill life for your household.

In order for you to understand the subject a little more, let’s take a look at disability insurance, including how it works, in this article. So, without further ado. let’s dive into this blog and learn some of the things everyone ought to know about disability insurance

The Nature of Disability Insurance


Disability insurance is an area of social protection, as it covers the material and financial well-being of the insured and his or her family through a periodic payment of compensation. Compensation is paid only in the event of death, permanent and total disability (IPT) or partial disability (IPP), temporary total incapacity, and total and irreversible loss of autonomy as a result of an accident or illness under certain conditions. Note that the disability can concern the physical and/or psychological state.

How to take out disability insurance

To take out disability insurance, you can choose between 2 different methods. The first is to take out a full disability insurance policy, while the second is to add guarantees that cover the risk of disability to the death insurance policy or the life insurance policy. Once you have taken out the policy, you must pay a social security contribution to your insurer. This is calculated according to your salary, the extent and nature of your claims, and your needs.

Conditions for taking out disability insurance

Disability insurance is open to all individuals, employees, and business owners who meet the general conditions required, of which there are 4:

    • The insured must be under 60 years old at the subscription time.
    • The insured must be subject to the Social Security system for at least 1 year prior to subscription.
    • The disability must not be the result of an accident at work. In other words, it must be caused by a non-occupational accident or illness.
    • The ability to work and the reduction in salary must be greater than 50%.

However, the conditions for compensation may be specified, as some contracts stipulate that compensation is available in certain specific cases. The most frequent are :

    • When the insured can no longer practice his or her original occupation;
    • When the insured can no longer practice any profession;
    • When the insured suffers a drop in income (even if it is less than 50%)
    • When the insured has no professional activity.

The advantages of taking out disability insurance

Disability insurance offers many benefits that cover a wide range of areas. It provides peace of mind by allowing you to maintain a stable standard of living in the long term because no matter your situation, you will always have a financial resource.

It allows you to cover a wide range of contingencies beyond the professional environment. If you decide to borrow money from a bank for a project, you will receive loan payments easily if you are already insured. If you are not, the bank may require you to take out insurance before granting your loan.

The duration of the disability insurance benefit

The length of the benefit depends on the terms of the disability insurance policy.

    • The contract may provide subsistence until you return to work in whole or part.
    • It may reimburse the loan with or without limitation.
    • It can limit the repayment to a full rate after a certain time, except for a disability exceeding 66%.

In addition, the duration of the compensation can be accompanied by some measures, such as the deductible period (a period without compensation) or the waiting period (period of effectiveness of the guarantee).

Cases not covered by disability insurance contracts


Disability insurance policies cannot cover disability resulting from personal misdeeds such as suicide, the practice of risky sports or activities, or death or disability caused by an intentional act of the insured. Nor can they cover irremediably compromised situations such as war, natural disaster, nuclear explosion, etc.

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