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Insurance that pays your rent if you can't? It's real, but you need to read the fine print.

Disability Income Insurance policies are out there, but there are a lot of exclusions.

GREENSBORO, N.C. — Car insurance, health insurance, and now rent payment insurance? Just recently a co-worker got a call from her insurance company. The pitch was--- there's insurance that will pay your rent if you're not working. Is this really a thing?

“This is a type of disability insurance that if you were injured or sick and couldn't work, it would be there to supplement your rent and help pay some of your bills, but the ‘I’m having a hard time paying my rent because I got laid off’, disability insurance is not for a layoff or getting fired,” said Christopher Cook of Alliance Insurance Services.

Disability Income Insurance is usually a separate policy and you pay per month depending on your age. For example, a 29-year-old might pay a $22 a month premium while a 53-year-old would pay $42 a month. Like every policy, you need to read the fine print, especially the exclusions and limitations.

“Sometimes injuries that occur during a misdemeanor,
like if you have a car accident and you were speeding in that accident and you were charged, the disability insurance could exclude that payment to you,” said Cook.

Another common exclusion to these disability income insurance policies: is pregnancy, addiction, and mental health issues.

This income policy may not be for you, but Cook says If your job offers short and long-term disability with your benefits plan, you should take it.

“Disability insurance is one of the most important things someone can have, 2/3 of us will be disabled at some time,” said Cook.

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