Your income is likely your largest financial asset. A disabling illness or injury is more common than early death, yet far fewer people are covered.
Short-term and long-term
Short-term disability covers a few weeks to months, often through an employer. Long-term disability starts after an elimination period, commonly 90 days, and can last for years or until retirement age. Benefits typically replace 50%–70% of income.
Key policy features
Own-occupation definitions pay if you cannot do your own job, even if you could work elsewhere. Non-cancellable and guaranteed-renewable policies lock in terms. Check the benefit period, riders for cost-of-living increases and whether benefits are taxable.
Getting coverage
Check your employer's group coverage first, then consider supplementing with an individual policy, especially if you are a high earner or self-employed. Buying while healthy is cheaper and easier.
Try the numbers
Use our Disability Insurance Needs Calculator to see this in practice. With its default example (Gross monthly income: $7,500; Essential monthly expenses: $4,600; Employer LTD coverage (% of income): 60%), it shows additional monthly benefit needed: $100. Adjust the inputs to match your situation.
Key takeaways
- Disability is more common than many people expect.
- Own-occupation policies offer stronger protection.
- Supplement employer coverage if needed.
This article is for general education and is not personalized financial, tax or legal advice. Rules and limits change; confirm current figures with official sources such as IRS.gov, SSA.gov and StudentAid.gov, or consult a qualified professional. © 2026 FinanzCalc.