Why Disability Insurance Matters
Most people insure their car, home, and life — but forget about their most valuable asset: their ability to earn income. Studies show that 1 in 4 workers will experience a disability that prevents them from working for 90 days or more at some point in their career.
Short-Term vs Long-Term Disability
Short-term disability typically covers 3–6 months of missed income. Many employers offer this as part of their benefits package. Long-term disability kicks in after the short-term period ends and can cover you for years — or until retirement age. Most financial experts recommend having long-term disability coverage that replaces 60–70% of your income.
What Affects Your Premium?
Disability insurance premiums depend on your age, health, occupation, benefit amount, and elimination period (the waiting period before benefits begin). Office workers pay less than those in physically demanding jobs. Choosing a longer elimination period (90 days vs 30 days) significantly reduces your premium.