Disability Insurance

Disability insurance provides income protection if you are unable to work due to an illness or injury. While health insurance pays medical bills, disability insurance helps replace a portion of your income so you can cover everyday expenses during recovery.

What Is Disability Insurance?
Disability insurance is a financial safety net that pays benefits when you cannot work because of a covered condition. Policies may be short-term, covering weeks to months, or long-term, which can provide income replacement for years or even until retirement.

Who Needs Disability Insurance?
Anyone who relies on a paycheck to cover living expenses can benefit from disability insurance. It is especially important for families with a single income earner, people with physically demanding jobs, and individuals without significant savings.

Common Questions About Disability Insurance

• How much income does it replace? Most policies cover 50 to 70 percent of your income.

• What is the difference between short-term and long-term disability insurance? Short-term policies cover temporary conditions, while long-term policies cover more serious or lasting disabilities.

• Is disability insurance through work enough? Employer-provided coverage may not replace enough income, so many people buy additional coverage.

• Are benefits taxable? It depends on whether premiums were paid with pre-tax or after-tax dollars.

• How long do benefits last? Benefit periods vary by policy, ranging from a few months to until retirement age.

Why Disability Insurance Matters
Disability insurance ensures that if you can’t work due to illness or injury, you still have financial support to cover essential living costs.