There are many different types of insurance, that secure the policy holder with a payout should a predetermined event occur. Disability Insurance (also referred to as Disability Income Insurance), is a common policy that insures the holder against disability or debilitating injuries, should they become too ill to work and make a viable income. Itís a way of hedging the risk of becoming injured and being unable to remain financially stable. Although people in all walks of life take out disability insurance, it is more common with those that work in dangerous jobs and professions, as they are more likely to become injured.
Since the nature of life puts most of us at risk. (We could all be hit by a car tomorrow), a lot of governments implement their own form of disability life insurance as part of a national policy, so that all citizens are protected to some degree. The united Stateís version is known as social security, and their Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) policies help those that do not have their own private insurance and would likely fall in to poverty without government intervention.
There are several other common forms of disability insurance - short term disability insurance and long term disability insurance - the first being employer supplied disability insurance. This, as the name suggests is supplied by the employer to protect their employees, as getting hurt on the job is a very common occurrence in almost all professions. Should an employer not have insurance for their employees it could lead to very costly lawsuits and other legal problems.
Secondly is workmanís compensation, which takes the employer supplied policy one step further. This type of insurance gives payment and compensation to employees that were hurt on the job, not just for their income, but also potentially for medical bills and other costs. Part of the agreement is that the employee waivers the right to take the company to court and claim that it was the employerís fault for the injury. Veteranís benefit for the military is a similar concept.
Individuals may take out their own private policy, which is common for freelancers and self employed people.