Disability Insurance Explained: Protecting Your Income

Your ability to earn an income is likely your most valuable financial asset. Disability insurance helps protect that asset if you become unable to work due to illness or injury.

What is Disability Insurance?

Disability insurance provides regular income payments if you become disabled and can't work. It helps replace a portion of your income, typically 60-70% of your pre-disability earnings.

Types of Disability Insurance

Short-Term Disability

• Coverage for 3-6 months
• Higher percentage of income replacement
• Often provided by employers
• Shorter waiting period

Long-Term Disability

• Coverage until retirement age
• Lower percentage of income replacement
• Can be individually purchased
• Longer waiting period

Key Features to Understand

1. Definition of Disability

   • Own occupation
   • Any occupation
   • Modified own occupation

2. Elimination Period

   • How long you must wait before benefits begin
   • Typically 30-180 days
   • Longer periods mean lower premiums

3. Benefit Period

   • How long benefits will be paid
   • Can be 2 years, 5 years, or until retirement

Who Needs Disability Insurance?

Consider disability insurance if you:

• Have dependents relying on your income
• Work in a specialized profession
• Are self-employed
• Have significant financial obligations
• Don't have substantial savings

Common Policy Riders

Optional features to consider:

• Cost of living adjustment
• Future increase option
• Residual disability benefits
• Return to work benefits
• Student loan protection

How to Choose Coverage

1. Calculate your needs
2. Review existing coverage
3. Compare policy features
4. Consider your occupation
5. Evaluate insurance companies
6. Work with a specialist

Next Steps

Ready to protect your income? Get a free disability insurance quote from QuoteLinker and speak with a licensed agent who can help you find the right coverage.