​Disability
Disability insurance is best described as Disability Income Replacement Insurance, as this type of coverage will pay a benefit,  based on the amount of your salary, in the event you are sick or injured and can’t perform work duties.   Most policies have an initial elimination period which could be a few days to a few weeks before the income replacement begins to pay-out.  For self-employed persons, care should be given to determining if premiums are paid with after-tax funds, and if they are, benefits, if ever paid out, would be considered non-taxable.   
 

Business Overhead Expense
A much lesser known type of disability coverage is available to business owners and should particularly be considered for high revenue producer individuals.  Many times this may be used by a physician practice, dental practice, or attorney firm, but any small business should consider its benefits.  This policy is advantageous as the company can pay for and tax-deduct as any other business expense, of premiums paid.  Bottom line is, when the revenue producer of a small business is sick or injured and can’t work, the business would suffer tremendously if the source of revenue isn’t at work generating revenue- but the rent still needs to be paid and employees still need payroll.  This version of a disability policy pays direct to the business and allows the business owner to recover without the threat if losing their business. ​