Disability Insurance

Disability insurance provides income replacement when a policyholder cannot work due to a qualifying illness, injury, or medical condition. There are two main types: short-term disability (STD), covering weeks to months, and long-term disability (LTD), which can last years or until retirement age. Policies typically replace 50-70% of pre-disability income. Employer-provided group plans are common but often insufficient, making individual supplemental policies important for comprehensive protection. Disability insurance is often called the most overlooked form of insurance, yet statistics show that one in four workers will experience a disability lasting 90+ days before retirement. Own-occupation policies are more protective than any-occupation policies.