Disability insurance provides financial protection by replacing a portion of your income if you become unable to work due to illness or injury. There are two main types: short-term disability insurance, which covers a portion of your salary for a few months, and long-term disability insurance, which can provide benefits for several years or until retirement age. Policies vary in terms of coverage amount, duration, waiting periods, and definitions of disability. Employer-provided plans are common, but individuals can also purchase private policies to supplement coverage. Disability insurance is crucial for maintaining financial stability and covering living expenses, medical bills, and other obligations during periods when you are unable to earn an income.
