Protect Your Income When You Cannot Work
Your income supports your home, family, bills, and everyday responsibilities. Disability income insurance can replace part of that income when a qualifying illness or injury prevents you from working.
Get straightforward help comparing coverage amounts, waiting periods, benefit periods, and policy definitions.
What Is Disability Income Insurance?
Disability insurance is designed to pay part of your income when a qualifying physical or mental illness, injury, or disability keeps you from working. Benefits are generally based on a percentage of your earnings and are paid according to the policy’s terms.
Health insurance helps with eligible medical expenses. Disability insurance serves a different purpose: helping you continue meeting financial responsibilities when your ability to earn an income is interrupted.
The right policy depends on your occupation, earnings, current benefits, savings, household obligations, and how long you could manage without a paycheck.
What Can Disability Income Insurance Help Protect?
Your Monthly Expenses
Benefits may help you continue managing your mortgage or rent, utilities, groceries, transportation, and other regular household bills.
Your Family’s Stability
Income protection can help reduce the need to rely entirely on a spouse, family member, credit card, retirement account, or emergency savings.
Your Long-Term Plans
Replacing part of your income may help you avoid interrupting savings goals, falling behind on major obligations, or making rushed financial decisions.
Explore Disability Income Insurance Options
Short-Term Disability Insurance
Short-term disability insurance is designed for temporary periods when a qualifying condition prevents you from working.
Policies generally begin paying after a waiting period and may provide benefits for several weeks, several months, or up to the maximum period stated in the policy. The Texas Department of Insurance notes that short-term policies commonly pay for no more than a year.
Short-term coverage may be useful for someone who wants help filling the gap between paid leave, emergency savings, and a return to work.
Long-Term Disability Insurance
Long-term disability insurance is designed for illnesses or injuries that prevent you from working for an extended period.
Depending on the policy, benefits may continue for a specified number of years or up to a stated age. Coverage begins only after the policy’s waiting period has been satisfied.
Long-term coverage can be especially important when your household would struggle to replace your income for several years.
Is Employer Coverage Enough?
Some employers provide short-term or long-term disability benefits. Start by reviewing:
- What percentage of your income the plan replaces
- The maximum monthly benefit
- How long benefits may continue
- How the plan defines disability
- Whether bonuses or commissions are included
- What happens when you leave your job
- Whether the benefits could be taxable
- What exclusions or limitations apply
If workplace coverage leaves a gap—or your employer does not provide disability benefits—you may be able to purchase an individual policy. The Texas Department of Insurance recommends first checking whether coverage is available through your job and then considering personally purchased coverage when it is not.
How Disability Insurance Works
Select a Benefit Amount
Your policy may replace a stated portion of eligible income, subject to the insurer’s limits and underwriting requirements.
Choose a Waiting Period
The waiting period—also called an elimination period—is the time between the beginning of a qualifying disability and the start of benefit payments. Longer waiting periods can affect both the premium and how much savings you may need before benefits begin.
Choose a Benefit Period
The benefit period determines the maximum length of time the policy may pay for a qualifying disability. Available periods vary by policy.
How Does the Policy Define Disability?
A policy’s definition of disability is one of its most important provisions.
Own-occupation definition
Some policies may pay when a qualifying disability prevents you from performing the important duties of your regular occupation, even when you may be capable of doing different work.
Any-occupation definition
Other policies may require that your condition prevent you from performing other gainful work for which your education, training, or experience qualifies you.
Some policies use one definition during the first part of a claim and a different definition later. Definitions and requirements vary significantly, so review the actual policy rather than relying only on the product name.
What Should You Review Before Buying?
Benefit amount
Understand how the insurer calculates your eligible income and the maximum benefit the policy can pay.
Elimination period
Determine how long you must be disabled before payments can begin and whether your savings can cover that period.
Benefit period
Review how long benefits may continue for one qualifying disability.
Definition of disability
Understand whether the policy uses an own-occupation, any-occupation, or another contractual definition.
Partial or residual disability benefits
Some policies may provide a reduced benefit when you can still work but a qualifying disability causes a loss of duties, hours, or income.
Renewability
A noncancelable provision generally prevents the insurer from changing the policy’s premium or coverage while requirements are met. A guaranteed-renewable provision generally guarantees renewal, although premiums may be increased for an eligible policy class. Exact terms vary
Exclusions and limitations
Review excluded conditions, pre-existing-condition provisions, benefit limitations, and activities that may not be covered.
Optional riders
Depending on the insurer, options may include residual benefits, cost-of-living adjustments, future-purchase options, or waiver-of-premium benefits. Availability and costs vary.
Who Should Consider Disability Insurance?
Coverage may be worth reviewing when you:
- Depend on your paycheck to pay household expenses
- Have limited emergency savings
- Are self-employed
- Own a small business
- Receive little or no disability coverage through work
- Earn commissions, bonuses, or variable income
- Have children or other financial dependents
- Carry a mortgage or significant monthly obligations
- Would have difficulty living on one household income
- Want to supplement an employer-provided plan
Build an Income-Protection Plan That Makes Sense
Disability policies can differ considerably in how they determine eligibility and calculate benefits.
I can help you review:
- Short-term and long-term options
- Individual and workplace coverage
- Monthly benefit amounts
- Waiting periods Benefit periods
- Own-occupation and any-occupation definitions
- Partial or residual disability provisions
- Renewability
- Available riders
- Business-owner coverage options
- How premiums fit your budget
Common Disability Insurance Questions
Can’t find what you’re looking for? We’ve gathered the answers our customers reach for most so you can get moving faster.
Still have questions?
Contact our teamIs disability insurance the same as health insurance?
No. Health insurance helps pay eligible medical expenses. Disability insurance is designed to replace part of your income when a qualifying condition prevents you from working.
Does disability insurance replace my entire income?
Usually not. Policies commonly replace a percentage of eligible income and may impose a maximum monthly benefit.
How soon will benefits begin?
Benefits begin after the policy’s elimination or waiting period has been satisfied and the claim has been approved. Waiting periods vary by policy.
How long can benefits last?
Short-term policies generally provide temporary benefits. Long-term policies may pay for a specified number of years or up to another limit stated in the contract.
Can I receive benefits if I can still work part time?
Some policies include partial or residual disability provisions that may pay a reduced benefit when a qualifying disability causes an income loss. The policy’s definition and requirements determine eligibility.
Can I purchase coverage if my employer already provides it?
You may be able to purchase individual coverage to supplement workplace benefits, subject to underwriting and the insurer’s participation limits.
Are disability benefits taxable?
Tax treatment can depend on who paid the premiums and whether they were paid with pre-tax or after-tax money. Benefits attributable to employer-paid or pre-tax premiums may be taxable, while benefits from a policy paid entirely with personal after-tax funds are generally not included as income. Individual circumstances can differ, so consult a qualified tax professional.
Is private disability insurance the same as Social Security Disability Insurance?
No. Social Security Disability Insurance is a federal program with its own eligibility requirements. Private disability-insurance benefits depend on the terms of the purchased policy.
Does disability insurance cover every illness or injury?
No. Coverage depends on the policy’s definition of disability, exclusions, limitations, waiting period, and claim requirements.
Your Income Is Worth Protecting
An illness or injury can affect more than your health. It can affect your home, savings, family, and long-term financial plans.
Let’s review disability coverage designed to help protect the income those responsibilities depend on.
Disability-insurance products, premiums, benefit amounts, definitions of disability, waiting periods, benefit periods, exclusions, limitations, riders, tax treatment, and underwriting requirements vary by insurer, state, policy, occupation, and applicant. Benefits are payable only when the policy’s eligibility and claim requirements are met. Policy terms and conditions control all coverage.