Coverage guide
Disability Insurance
Disability insurance can replace part of income when a covered illness or injury prevents work. Policies may be short-term or long-term and define disability in different ways.
What it covers
- Short-term income replacement
- Long-term income replacement
- Own-occupation definitions where offered
- Elimination periods
- Partial disability benefits
Who commonly researches it
- Workers who rely on earned income
- Self-employed professionals
- Households without large emergency savings
When people commonly buy
- When income supports bills or dependents
- Before health issues limit insurability
- When employer benefits are incomplete
Coverage considerations
- Definition of disability is critical
- Elimination period affects when benefits start
- Benefit duration affects protection length
Common exclusions
- Pre-existing condition limits
- Self-inflicted injury
- Some mental or nervous condition limits
- Non-covered work situations
Cost factors
- Age
- Health
- Occupation
- Benefit amount
- Benefit period
- Elimination period
- Riders
Comparison checklist
- Compare own-occupation vs any-occupation language
- Check elimination period
- Review benefit duration
- Ask about residual benefits
FAQ
What is an elimination period?
It is the waiting period after disability begins before benefits may start, if the claim qualifies.
Does employer coverage replace all income?
Employer disability coverage may replace only a percentage of income and may have taxable benefit considerations. Review your plan documents.