Your ability to earn a living shouldn’t be taken for granted. Disability insurance can help replace your income if you become unable to work due to a sudden accident or illness.
Who Needs Disability Insurance?
Most people assume they don’t need disability insurance if they don’t work a dangerous job or they’ve always been healthy. Some of the most common reasons for filing disability claims, however, are for mental health issues (anxiety, depression), pregnancy, digestive disorders, cancer, or musculoskeletal disorders (like carpal tunnel or neck/back pain).
If you’re working—either for an employer or for yourself—and you couldn’t afford going months or years without a steady income, consider adding disability insurance.
Types of Disability Insurance
Short-term disability (STD) policies have a waiting period of zero to 14 days and provide benefits for up to two years. The cost can be similar to that of long-term disability, and short-term options can be more challenging to find if not offered through an employer.
Long-term disability (LTD) policies have a waiting period of several weeks to several months. LTD can provide benefits for several years or to retirement. It’s the most cost-effective type of disability insurance. Benefits are tax-free and can be used as needed.