Disability Insurance

Disability insurance provides income replacement if you become disabled and unable to work. It ensures that you can continue to meet your financial obligations and maintain your standard of living during a period of disability. Disability insurance policies can be short-term or long-term, depending on your needs and occupation.

Types of Disability Insurance

Short-term Disability Insurance

  • Replaces a percentage of income for a short period (3-6 months).

  • Often provided by employers.

Long-term Disability Insurance

  • Replaces income for an extended period, potentially until retirement.

  • Typically covers 40%-65% of income.

  • Available through employers or for individual purchase.

Advantages of Disability Insurance

  • Pays a percentage of your salary during periods you can't work.

  • Covers lost income from a few weeks to your entire working life, depending on the policy.

  • Similar to auto, homeowners, and life insurance in importance.

  • Mortgage payments, saving for college, and daily expenses all rely on your income.

  • Medical Bills

If you rely on your income, disability insurance is crucial.

  • Helps cover everyday expenses and medical bills when you can’t work.

  • Protects potential earnings, which can amount to millions over a career.

  • Policies available for various professions and self-employed individuals.