Disability Insurance

Insurance

Disability insurance replaces a portion of income (typically 60-70%) if you can't work due to injury or illness. Short-term disability covers 3-12 months; long-term disability covers years or until retirement age. Statistics: 25% of workers will experience a long-term disability before retirement. Most employer plans cover only 50-60% of base salary, taxable if employer-paid. Own-occupation policies (you can't perform your specific job) provide stronger coverage than any-occupation policies. High-earning professionals (doctors, lawyers, executives) should supplement employer coverage with individual policies. Disability is the most-overlooked but financially critical insurance — your earning power is typically your most valuable asset.