Disability Income Insurance
What Is Disability Income Insurance?
Disability Income insurance is a type of coverage that provides income replacement if you're unable to work due to a physical or mental illness or injury. It's designed to protect your ability to earn a living when a health condition prevents you from doing your job.
Why It's Important
Your income is one of your most valuable assets. If you were suddenly unable to work due to an accident, illness, or chronic condition, disability income insurance helps ensure you can still cover essential living expenses.
Types of Disability Income Insurance
1. Short-Term Disability Income Insurance (STD)
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Coverage Length: Typically 3 to 6 months
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Waiting Period (Elimination Period): Usually are 0 to 14 days after disability begins
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Benefit Amount: Often 50% to 70% of your gross income
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Purpose: Covers temporary disabilities like surgeries, injuries, or maternity leave
2. Long-Term Disability Income Insurance (LTD)
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Coverage Length: Several years, up to age 65, or for life (depending on the policy)
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Waiting Period: Often 90 to 180 days
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Benefit Amount: Typically 40% to 60% of your gross income
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Purpose: Covers serious or permanent disabilities, such as cancer, severe injury, or mental illness
Cost of Disability Insurance
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Typically 1%–3% of your annual income for individual policies.
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Costs vary based on:
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Age
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Health
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Occupation
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Coverage amount
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Waiting and benefit periods
Free Disability Income Insurance Calculator
Curious what your numbers look like?
Here is a simple, Disability Income Insurance calculator that shows how much of your income could be at risk and what it would cost to protect it.
✅ It takes less than 60 seconds
✅ No personal info required
✅ Helps you see what your estimated monthly benefits, premiums and lifetime benefit would look like.
🔗 Get Your Personlaized Disability Income Insurance Assessment