Disability Insurance Basics

Disability insurance pays benefits when you are unable to earn a living because you are sick or injured. Most disability policies pay you a benefit that replaces a percentage of your earned income when you can't work.

Why would you need disability insurance?

Your chances of being disabled for longer than three months are much greater than you may realize. According to the Social Security Administration, 1-in-5 Americans live with a disability. More than 1-in-4 20-year-olds become disabled before reaching retirement age*. The possibility of not being able to earn a living due to a disability increases your need to protect your income with disability insurance.

Consider what might happen if you suffered an injury or illness and couldn't work for days, months, or even years. If you're single, do you have other means of support? If you're married, you may be able to rely on your spouse for income, but you probably also have many financial obligations, such as supporting your children and paying your mortgage. Could your spouse's income support your whole family? In addition, remember that you don't have to be working in a hazardous position to need disability insurance. Accidents happen not only on the job but also at home, and illness can strike anyone.

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