What to know before choosing a plan
Plain-language information, designed to help you compare meaningful differences.
What does disability insurance do?
Disability insurance is designed to replace a portion of eligible income when sickness or injury prevents work under the policy’s definition of disability. Benefits, tax treatment and coordination with other coverage depend on the specific contract and how premiums are paid.
Self-employed people, professionals and employees with limited long-term disability benefits may face different gaps.
Waiting periods and benefit periods
The elimination period is the time after a covered disability begins before benefits become payable. Longer waiting periods can lower premiums but require more savings to cover expenses during the gap.
A benefit period may last a specified number of years or, with some products, to a stated age. Match the design to your emergency fund, workplace plan and household cash flow.
Own-occupation and regular-occupation definitions
Policy definitions determine whether inability to perform your usual profession qualifies, whether work in another occupation affects benefits and how the definition changes over time.
Residual or partial disability features, inflation adjustments and future insurability options may be important for some professionals. Review exclusions and limitations carefully.
A practical income risk review
Total regular household expenses, existing savings and employer disability benefits indicate how much income replacement may be needed. Estimate the first 90 days separately from a long-term inability to work.
An advisor can help compare the effect of benefit limits, underwriting and contract terms.