What are the coverage characteristics for disability insurance?

Disability insurance provides financial support if you become injured or sick and unable to work. It typically covers:

- Total disability: This coverage pays a benefit if you are unable to perform any work in your occupation.

- Partial disability: This coverage pays a benefit if you can still work but are not able to earn as much as you did before your disability.

- Specific disabilities: This coverage pays a benefit if you are unable to perform a specific task or activity that is essential to your job.

The amount of coverage you need depends on your income, expenses, and family situation. You should also consider the length of time you need coverage for. There are two types of disability insurance: short-term and long-term.

Short-term Disability Coverage:

This type of insurance typically lasts anywhere from a few weeks to two years and provides benefits that typically replace about 60%-70% of your income. Short-term disability insurance can be provided through your employer or you may purchase an individual policy.

Long-Term Disability Coverage:

Long-term disability insurance usually provides benefits that begin after your short-term disability benefits end. It typically lasts until you reach retirement age and provides benefits that are up to 60% of your income.

Your coverage options and the amount of benefits you can receive may vary depending on the insurance company and the type of policy you purchase. When choosing a disability insurance plan, it is important to compare policies from different companies to find the best coverage for your needs.