What is Disability Insurance?

Disability insurance replaces a portion of your income if you become disabled and can't work, providing financial stability during recovery or long-term disability. It helps maintain your lifestyle, pay bills, and cover essential expenses when you're unable to earn an income due to injury or illness.

Key Benefits

  • Income replacement when you're unable to work due to disability
  • Protection of your financial security and lifestyle
  • Ability to pay ongoing bills and expenses while disabled
  • Support for your family during your recovery
  • Peace of mind knowing you're protected from income loss

Coverage Options

Short-Term Disability

Typically covers 3-6 months with higher benefit amounts (usually 60-70% of your income). Benefits begin after a short elimination period, often covering temporary disabilities.

Long-Term Disability

Covers extended periods (years or until retirement) with benefit amounts typically ranging from 40-65% of your income. Has a longer elimination period but provides protection for serious, long-lasting disabilities.

Own-Occupation

Pays benefits if you can't work in your specific profession, even if you could work in another field. This premium coverage is especially valuable for specialized or high-income professionals.

Any-Occupation

Pays benefits only if you can't work in any suitable occupation based on your education, training, and experience. This more restrictive definition leads to lower premiums but potentially fewer paid claims.

Frequently Asked Questions

What's the difference between short-term and long-term disability insurance?

Short-term disability typically covers 3-6 months with higher benefits and a shorter elimination period. Long-term disability covers extended periods (years or until retirement) with a longer elimination period.

How much of my income will disability insurance replace?

Typically, short-term policies replace 60-70% of your income, while long-term policies replace 40-65%. Benefits are often tax-free if you paid the premiums with after-tax dollars.

What's an elimination period?

This is the waiting period between when your disability begins and when your benefits start. Shorter elimination periods mean higher premiums.

Does Social Security provide disability benefits?

Yes, Social Security Disability Insurance (SSDI) is available, but qualification is difficult (requiring total disability), benefits are modest, and there's a 5-month waiting period.