What Is Disability Insurance and Do You Need It?

Most people insure their car and their home — but what about their income? Disability insurance protects your paycheck if you're too sick or injured to work. Here's how it works.

Request an insurance quote or contact a licensed advisor.

Your income is your most important financial asset. Disability insurance protects it if an illness or injury leaves you unable to work.

How Disability Insurance Works
If you become disabled and can't work, disability insurance pays you a percentage of your pre-disability income — typically 60–70% — as a monthly benefit until you recover or reach a specified benefit period.

Short-Term vs. Long-Term Disability
- Short-Term Disability: Covers 3–6 months of disability. Often offered through employers. Benefits typically start after a 7–14 day waiting period.
- Long-Term Disability: Covers extended disability — from 2 years to retirement age. The waiting (elimination) period is typically 90–180 days.

Who Needs It?
If you'd struggle to pay your bills after missing more than 2–3 months of work, you need disability insurance. The Social Security Administration reports that 1 in 4 workers will experience a disability before retirement.

Own-Occupation vs. Any-Occupation
- Own-occupation: Pays benefits if you can't perform your specific job. Better for professionals.
- Any-occupation: Only pays if you can't do any type of work. Less protective but lower cost.

Does Employer Coverage Cover It?
Group disability through work is a good start, but employer plans often cover only 50–60% of your base salary and don't cover bonuses. Individual policies can fill the gap.

*Ask Chime Insurance Group about individual disability policies that stay with you even if you change jobs.*