Disability insurance is a type of insurance provided to workers and business owners who are temporarily disabled and unable to work at their previous job or, in some cases, at any job. Disability insurance can be provided by:
- Social Security. Workers and self-employed individuals who have paid enough into the Social Security OASDI (Old Age, Survivor's and Disability Insurance) fund may be eligible to receive disability insurance from this fund.
- Employer. Some employers provide temporary disability insurance for employees. The amount of insurance, qualifications, and restrictions, are established in each employer's plan.
- Workers Compensation.Employees who have work-related illnesses and injuries may be eligible to collect workers compensation payments (a form of disability benefits) from the state workers' compensation fund.
- State disability insurance programs. Five states (California, Hawaii, New Jersey, New York, and Rhode Island) and Puerto Rico require businesses to pay for temporary disability insurance.
