If a disabled person with a disability income policy dies, what is typically owed to their estate?

In the case where a disabled person with a disability income policy passes away, the typical amount that is owed to their estate pertains to earned but unpaid benefits. This means that any disability benefits that were rightfully accrued prior to the individual’s death and had not yet been disbursed will be payable to the estate.

Disability income policies generally provide for benefits to cover income loss during a period of disability but may not necessarily pay out the full policy benefit as a lump sum upon death. The specifics of the policy terms often dictate that only those benefits which have been earned during the time the policy was in force and not yet paid will constitute the estate's entitlement.

This aligns with the insurance principle of indemnity, where the intention is to replace the income lost due to disability only for the duration of that qualifying condition, rather than providing a death benefit like traditional life insurance policies would.