Disability Insurance Guide (2026) - Income Protection
Disability insurance guide: short-term vs long-term, benefit amounts, elimination period, and occupation classification.
Summary
Disability insurance replaces income if unable to work: short-term (3-6 months), long-term (to retirement). Benefit 50-70% of income. Cost 1-3% of income. Essential for income protection.
Key Steps
- 1Short-term: covers 3-6 months, elimination period 0-14 days.
- 2Long-term: covers to retirement or age 65, elimination 60-180 days.
- 3Benefit amount: 50-70% of pre-disability income typical.
- 4Cost: 1-3% of annual income for comprehensive coverage.
- 5Occupation class: high-risk professions pay higher premiums.
- 6Definition: own-occupation (best), modified own-occ, any-occupation.