Disability insurance is a type of insurance coverage that replaces a part of your income if you become disabled. Long-term disability insurance benefits start after the elimination period, usually 90 days, and last for a predetermined amount of time, usually five years or until the insured reaches the age of 65.
Death benefit is the amount payable to the beneficiary of an insurance product upon the death of the insured. Death benefit is usually associated with a life insurance policy.
Long-term disability insurance policies usually come with a variety of additional benefits -- riders. Most common riders are: cost of living adjustment rider, return of premium rider, future increase option rider, social security rider and accidental death and dismemberment rider.
Long-term disability insurance does not pay a death benefit per se. When attached to a long-term disability insurance policy, the accidental death and dismemberment rider pays benefits if you die as a result of an accident or suffer a loss of sight, hearing and limbs. Usually insurance companies have a schedule that details how much they pay for each type of accidental bodily injury or accidental death.