Disability insurance is one of the most overlooked yet essential types of coverage. Your ability to earn income is your most valuable asset, and disability insurance protects it when illness or injury prevents you from working.

Statistics show that a significant percentage of workers will experience a disability before reaching retirement age. Without disability coverage, a serious illness or injury could devastate your finances within months.

Short-term disability insurance typically covers 60-70% of your salary for three to six months after a short waiting period. It bridges the gap for temporary disabilities and recovery periods.

Long-term disability insurance kicks in after short-term benefits end and can provide income protection for years or until retirement age. This coverage is crucial for serious conditions requiring extended recovery.

Group disability insurance through employers provides basic coverage, but benefits are often limited and taxable. Individual disability policies offer better protection with tax-free benefits and portable coverage.

Key policy features to consider include the definition of disability (own occupation vs. any occupation), waiting period, benefit period, and cost-of-living adjustments. Own occupation policies provide better protection for specialized professionals.

Riders can enhance your policy with features like future increase options, residual disability benefits, and return-to-work incentives. These additions customize coverage for your specific needs.

Apply for disability insurance while you're young and healthy to lock in lower rates and ensure insurability. Pre-existing conditions can limit coverage or increase costs significantly.