Disability insurance replaces part of your income if illness or injury stops you from working. Your ability to earn is often your biggest financial asset, so it deserves protection.
Short-term vs long-term cover
Short-term policies cover a limited period, while long-term policies can last for years or until retirement age. Long-term cover is usually the more valuable safety net.
What policies typically pay
Benefits are commonly a percentage of your income, such as 50 to 70 percent. Check the waiting period, benefit period and definition of disability.
Employer vs personal policies
Employer plans are often cheaper but may end when you leave and may have lower limits. A personal policy travels with you.
How to compare
- Definition of disability: own occupation or any occupation
- Waiting period before payments begin
- Exclusions and pre-existing condition rules
- Whether benefits are taxable
Frequently asked questions
Who needs disability insurance?
Anyone who relies on their income to cover living costs.
Is it expensive?
Cost depends on age, health, occupation and benefit level.
Final thoughts
Use this disability insurance guide as a starting point, compare your options, and adjust for your own income and goals.
This article is for general information only and is not financial, tax, legal or insurance advice. Rates, rules and eligibility vary by country and provider, so check current details before deciding.