Disability Insurance

What Is Disability Insurance — and Why It Matters

Your ability to earn an income is one of your most valuable assets. If an illness or injury kept you from working for an extended period, the impact on your household finances could be significant. Disability insurance helps protect that income by replacing a portion of your earnings when you’re unable to work due to a covered medical condition.

Many people assume workers’ compensation would cover them, but most long-term disabilities aren’t caused by workplace accidents. They’re the result of conditions like back injuries, cancer, or heart disease. That’s why having a personal disability policy can be an essential safeguard — it supports you when life’s unexpected challenges fall outside the scope of employer benefits.

Each policy is different, and coverage varies based on the type of disability, how long it lasts, and the level of income replacement you select. Our team helps you evaluate your options so your protection aligns with your long-term goals.

Types of Disability Coverage

Short-Term Disability (STD)

Short-term disability provides temporary income support if a medical condition keeps you from working for a few weeks or months. Many employers offer STD plans, though the specifics vary.

Typical features include:
• A short waiting period before benefits begin (often around two weeks)
• Coverage for many physical conditions that prevent you from doing your job
• Benefit payments that replace roughly 60%–80% of your income
• A benefit period that usually lasts three to six months

Some conditions — such as pregnancy or mental health–related disabilities — may or may not be covered, depending on the plan.

Social Security Disability Insurance (SSDI)

SSDI is part of your federal Social Security benefits, but it has strict eligibility rules and is generally not enough to rely on by itself.

Considerations include:
• You must earn sufficient Social Security work credits to qualify
• SSDI only covers severe, long-lasting disabilities that prevent you from doing any work
• There’s a five-month waiting period before benefits begin
• Average monthly payments are modest and may not meet your income needs

For many individuals, SSDI serves as a backup resource rather than a primary safety net.

Long-Term Disability Insurance (LTD)

Long-term disability coverage is designed to protect your income during extended or permanent disabilities. Unlike SSDI, private LTD policies typically have more flexible qualification criteria and offer stronger financial protection.

Key advantages include:
• Coverage that often replaces 60%–80% of your income
• A waiting period that usually ranges from 3 to 6 months
• Benefits that may continue through retirement age, depending on the policy
• Customizable options that let you align coverage with your budget and goals

Many clients invest 1%–3% of their annual income in an LTD policy to secure long-term income protection.