by What Is Disability Insurance and Why It Matters
Disability insurance provides financial protection in case an illness or injury prevents you
from working and earning an income. It acts as a safety net for individuals who may become
temporarily or permanently disabled, ensuring that they can meet their financial obligations.
Short-Term vs. Long-Term Disability Insurance
There are two main types of disability insurance: short-term and long-term. Short-term
disability provides coverage for a few months, typically up to one year, whereas long-term
disability may cover several years or until retirement. Understanding the difference helps
individuals choose the right coverage.
How Disability Insurance Supports Financial Stability
Without disability insurance, a sudden injury or illness could quickly drain savings and put
individuals and their families in financial jeopardy. Disability insurance provides income
replacement, helping to cover everyday expenses such as rent, mortgage, and medical bills
during recovery periods.
Choosing the Right Disability Insurance Policy
When selecting disability insurance, it’s essential to evaluate the waiting period, benefit
amount, and the policy’s definition of “disability.” Consider the likelihood of needing
short-term versus long-term coverage and choose a policy that reflects your income and
lifestyle.
