Definition of "Disability Insurance"

A form of health insurance that pays the policyholder in place of his or her usual income if the policyholder can't work because of illness or accident. Usually, policies begin paying after a waiting period stipulated in the policy, and pay a certain percentage of the policyholder's usual income. Sometimes this is provided by employers, but it's also available as a separate coverage.

A form of health insurance which provides periodic payments when the insured is unable to work as a result of sickness or injury.