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Disability Income

Protecting Your Income 

Your ability to earn income serves as one of your most valuable assets.  Owning disability insurance is critical to maintaining your standard of living should an injury or illness affect your ability to earn a paycheck.  All of your plans for the future - buying a home, putting your kids through college, building a retirement nest egg, etc., are based on the assumption you will continue to earn a paycheck until you retire.  Think about what could happen if those paychecks stopped?  That’s where disability insurance comes in.

The Social Security Administration estimates that 3 out of 10 Americans entering the workforce will become disabled before they retire.  Consideration should always be given to help protect yourself now with comprehensive coverage you know you can rely on later.

What is Disability Insurance 

Disability insurance provides income replacement benefits in the event an illness or accident results in a disability that prevents the insured from working at their regular employment.  Benefits are usually paid monthly so the insured can maintain a comparable standard of living and pay recurring expenses.  Disability insurance provides protection due to injury or illness that did not result from an incident at your job (workers compensation would pay for an at-work related injury or illness).

Types of Disability Protection

Short Term Disability Insurance 
Short-term disability (STD) insurance is designed to replace a portion of your income and pays a percentage of your salary if you become temporarily disabled, which means that you are not able to work for a short period of time due to sickness or injury.  Short term disability generally has a 1-4 week waiting period and can pay benefits up to one year. 

Long Term Disability Insurance 
Long-term disability (LTD) insurance is also designed to replace a portion of your income when a disability prevents you from working, but it will pay benefits for much longer.  Most plans will provide protection for many years, or to Retirement age.  Long-term disability insurance will generally have a waiting period of 1-6 months.  

Disability Income Insurance 
Disability income (DI) insurance is a supplemental policy designed to protect policyholders if they are unable to work due to an illness or accident.  This type of supplemental coverage is often purchased if an employee is not offered STD or LTD by their employer, or if they desire additional protection beyond what the employer’s plan offers.  This is also often the only choice for many self-employed workers. 

How Much Protection Do I need?

Most disability insurance policies will provide up to 60% of your pre-disability earnings, but in order to determine if this is the right amount for you, you should determine what your essential monthly expenses are so that you can ensure you’ll be able to maintain your standard of living, or at least prepare for how you might need to adjust should a disability occur. 





  • Disability Income  This calculator estimates your chances of becoming disabled and your potential need for disability insurance.  

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