Disability Income Insurance

Here's something most people don't want to think about: what if you got hurt or sick tomorrow and couldn't work for months, or even years? Your bills don't stop coming just because your paycheck does.

That's exactly what disability income insurance is for. It's not the most exciting topic, but it might be one of the most important types of insurance you never knew you needed.

The Reality Check

Your ability to earn money is probably your biggest asset. Think about it - if you make $50,000 a year and work for 30 more years, that's $1.5 million in income. Would you leave a $1.5 million house uninsured? Probably not.

Yet most people have no plan for what happens if illness or injury stops them from working. And before you say "that won't happen to me," consider this: about 1 in 4 people will become disabled for at least a year during their working life. It's more common than you think.

What Disability Income Insurance Actually Does

Simple: if you can't work because of a covered disability, it pays you a monthly benefit. Usually it's around 60-70% of your current income, which is enough to keep your life from falling apart while you recover.

The key word here is "income." This isn't about paying your medical bills - that's what health insurance is for. This is about replacing the paycheck you're not getting while you're unable to work.

Short-Term vs. Long-Term: What's the Difference?

Short-term disability covers you for a few months to a year. Think broken leg, surgery recovery, or a temporary illness. Many employers offer this, but the coverage is usually pretty basic.

Long-term disability kicks in after short-term ends and can last until retirement age if necessary. This is the big one - it protects you from career-ending disabilities like serious injuries, cancer, heart disease, or mental health conditions.

Most people need both, but if you had to pick one, long-term is more critical. You can probably survive a few months without income if you have to. But years? That's when people lose their homes.

Group vs. Individual Policies: Know the Difference

If your employer offers disability insurance, that's great - but it's probably not enough. Group policies through work usually have big gaps:

• They only cover you while you work there

• Benefits are often limited and taxable

• The definition of "disability" might be stricter than you'd like

• You can't take it with you if you change jobs

Individual policies cost more upfront, but they're yours forever. Plus, you get to choose the coverage that actually makes sense for your situation and income level.

What I Can Help You With

I work with multiple insurance companies to find disability coverage that fits your budget and actually protects you. Here's what we'll figure out together:

How much coverage you need: Based on your current expenses and income goals if you become disabled.

What type works best: Whether you need short-term, long-term, or both.

The right definition of disability: Some policies only pay if you can't do any job. Others pay if you can't do your specific job. Guess which one is better?

Benefit periods and waiting periods: How long you'll wait before benefits start, and how long they'll continue.

Let's Be Honest About the Downsides

Disability insurance isn't cheap, especially if you're young and healthy. It can feel like you're paying for something you hope you'll never use. And the application process asks a lot of personal questions about your health and job.

But here's the thing: if you ever need it, you'll be incredibly glad you have it. I've seen people's entire financial lives get destroyed because they thought disability "wouldn't happen to them."