Long Term Care Planning

Protect Your Income if you get sick or injured

Did you know that one in four people over the age of 20 will experience a short-term disability before they retire? Workers with Disability Insurance (DI) get short-term salary replacement benefits if they can’t work due to illness or injury.


What Is The Definition of a Disability

A disability refers to when you’re too sick or too injured to work for a defined period of time. Every disability insurance policy has a specific definition of what it means to be disabled in order to qualify for benefits, so talking to an agent and reading the fine print will be important. 

In technical jargon, the term “own-occupation” means you qualify for disability benefits if you are unable to continue to work in your own occupation.

“Any occupation” means you are unable to work in any occupation. You can also be “partially disabled” which would be determined, and therefore would have an impact on the benefits you receive from a policy.  These are critical terms that you’ll want to fully understand and working with an agent will help you to make the right decision on a policy.

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What Is Disability Insurance

Disability insurance is used to provide income benefits to you if you are unable to work and not receiving a paycheck because you are either too sick or injured for an extended period of time. Disability insurance is also known as income protection or income protection insurance. If you have a disability insurance policy then you can use the benefits to pay your bills, just like you normally would from the use of your paycheck.

There are two types of disability insurance; short term and long-term.

With short term disability insurance, in many cases you’re able to get immediate benefits paid after an accident, as an example.

Long term disability insurance provides income replacement for disabilities that last for an extended period of time, like a number of years. Many employers offer some level of disability insurance, but it’s becoming less common for this to be part of employer benefits, and the amount offered is often less than would be needed by many people in the event they needed to claim benefits.

Therefore having a private disability insurance policy can be a good idea for many to make sure they can pay their bills while they recover from their injury or illness.

What Does Disability Insurance Cover

You can use benefits received from your policy to pay for just about anything including:

How Much Coverage is Needed

You should have enough coverage so you will be able to pay your bills each month while you’re recovering from your illness or injury. You might need to cut out some of the frills like dining out, or going to the movies or vacations for a while, but having enough coverage to keep your household bills being paid on time should be your goal. So, even if you have a group policy at your place of work, you’ll only typically get 40% to 60% of your salary and it will be taxable. Therefore, your bills may not be covered depending on your lifestyle and needs. If you have an individual policy, then it will typically cover up to 80% of your salary and will usually not be taxed.

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Short vs. long term Disability insurance

Short term disability insurance, also known as STD, typically replaces 60%-80% of your lost income for a short period of time, which is usually for around 3 to 6 months, and almost never more than a year. This is the type of disability insurance that is more typical and sometimes offered by employers.

Long term disability insurance, also known as LTD, typically replaces 60% to 80% of your lost income and offers benefits that are designed to last for many years, including through retirement years if needed, if something were to happen to you and you were no longer able to work.  Some employers offer this type of insurance, but it’s not as typical as short-term.

Summary Comparison

Short Term Disability Insurance

Long Term Disability Insurance

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How does Disability insurance Work?

If you have a policy then all you need to do is contact your agent or the insurance carrier to start filing a claim if you’re looking to receive policy benefits. Some form of proof of an illness or injury will be required as part of the process. A disability policy has five basic features like most other forms of insurance.


This is the amount you pay for the policy. The amount varies based mostly on the length of coverage selected, type of coverage, your individual health, and the benefit amounts (ie. how much you will receive in income protection).


This is the amount of money you will receive each month when you can’t work. Typically this is 60% to 80% of your salary. The good news is this money typically is not taxed if you purchase a policy yourself, but if it’s part of a group plan offered by your employer it will likely be taxed. So keep that in mind when planning for your disability insurance coverage.




This is the length of time you will receive benefits. For short-term disability insurance it’s typically not longer than a year, but for long-term disability insurance it can range for several years up to retirement or until you are recovered



In the insurance world, this is known as the elimination period and is the amount of time you must wait between filing your claim and when benefits can be paid to you. The waiting period is usually much shorter for a short-term disability policy than for a long-term policy.

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how can Policy Solver Help

We are licensed and know the in’s and out’s when it comes to planning for your Disability Insurance needs.  We’re here to help; not sell you something.  Truly.  Give us a call or book an appointment so we can have a conversation about your specific needs.

Is Disability Insurance Worth the cost?

Individual disability insurance is a personal choice and only you can determine whether it’s worth the cost or not based on your situation. As an example, if your policy costs you $125 a month, and you pay it for 10 years before you make a claim, then you will pay $15,000. If you become disabled from your job and have $3,000 of monthly bills and are unable to work for 1 year, then you’ll need $36,000 to cover those bills. If your salary is $50,000, then with an individual policy providing benefits at 80% you’ll receive $40,000, which will be enough to cover your bills. Otherwise, without a policy in place, then you’ll need to make sure you have enough savings to cover your lost income.

Each situation is unique and we can help you decide your best plan. Learn everything about disability insurance with Policy Solver and feel free to explore our Disability Insurance Calculator for the best disability insurance quotes. Contact us or schedule a free consultation today!

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Benefits of Disability insurance

Unlike what most people think, disability insurance isn’t just to cover accidents. In fact, a majority of long term disabilities are caused by illnesses such as multiple sclerosis, arthritis, lupus, heart disease, and cancer. These are things that are hard to protect yourself from, and if you have a long-term disability insurance policy then it can help provide the financial security you need to take care of yourself and your loved one’s if you’re unable to work.

Key Takeaways:

Disability Insurance Made Easy

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Get The Info Frequently Asked Questions

Social security disability insurance is part of your social security benefits, however it is usually very hard to qualify to receive benefits if you become disabled as most applicants are rejected and benefits are typically lower than an individual policy. 

You should consider getting a supplemental individual disability insurance policy through your employer if it’s available, or you can purchase an individual policy on your own through an agent or insurance broker.  Your policy through an employer will typically have the benefits taxed. 

Anyone is able to purchase disability insurance, and you should contact an agent or insurance broker to learn more about your options, costs, benefits so you can get the coverage you need. 

It is easy to apply for disability insurance.  But, certain factors including your age, occupation, and lifestyle will help determine what coverage you can get and at what price.

Technically, there are no medical conditions that automatically qualify you for disability benefits.  However, there are many common disabilities that people will make a claim for on their disability insurance policy, often resulting in coverage.  

Of course, when you are picking the right policy based on your needs, you should review the common disabilities and conditions associated with the insurance policy so you can get a sense for what might be considered a qualifying disability in the event the situation arises. That will need to be clearly documented on the statement that is provided as part of the claims process. 

If you’re looking to file a claim for coverage, then your healthcare providers will not be able to provide any disability benefits even though they will cover the cost (based on your health plan details) for the treatment of the conditions that are causing the disability. It’s important to understand the difference.

That said, here is a typical list of medical conditions that are commonly associated with being covered by disability insurance policies. We’re listing them so you can get a good sense of the types of conditions that are typically claimed for and covered. But make sure you read the fine print of your policy.

  • Cardiovascular disorders such as chronic heart failure or a heart attack
  • Musculoskeletal disorders including joint, spine, and bone injuries
  • Senses and speech disorders including those related to vision
  • Skin conditions such as burns, dermatitis, chronic infections
  • Respiratory or breathing disorders including asthma, emphysema, and chronic bronchitis.
  • Digestive system issues such as liver conditions and bowel inflammation
  • Endocrine disorders including those related to glands including thyroid and pituitary gland disorders
  • Genitourinary disorders including genital organs and urinary illnesses
  • Neurological conditions such as brain tumors (even if benign), and also epilepsy
  • Hematological disorders including blood conditions
  • Mental conditions such as depression, anxiety and bipolar disorder
  • Cancer including breast cancer, lung cancer, skin cancer, or colorectal cancer
  • Immunodeficiency disorders including HIV, or lupus


A long-term disability insurance policy will provide benefits for either two, five, ten years, or all the way up until retirement. The average long-term disability claim typically lasts for 31.6 months. 

Depending on your occupation, how much savings you have to weather being unable to work for an extended period of time, and how close you are to retirement, should all be factored into how long your benefit coverage period should be when you pick out a long-term disability insurance policy. 

For example, if you’re self-employed and do something that’s physically challenging or requires high motor-skills like a dentist, orthodontist, physical therapist, or nurse, then you should consider a long-term disability policy that covers you for several years, if not up until retirement. 

Typically, the day of disability is when the actual disability is said to have occurred, and any medical conditions associated with it will be noted by the insurance company when you file a claim. 

The insurance company will also provide you with notice of the disability period, which should be in line with what you originally signed up for when you signed for your policy. Any benefit payments associated with the policy will then be considered to be made once the claim has been processed and approved by the insurance company.


The chances that you will need your disability insurance benefits are very high. According to the Council for Disability Awareness, 1 in 4 people over age 20 will become disabled before they retire. So if you have people counting on your salary to put food on the table, pay the bills, and make sure everyone can keep their lifestyle, then we recommend you keep it until you are able to retire. 

Even if you’re single, then it is even more important because if you can’t bring in an income, then you typically won’t have anyone else to help you, and so our answer is the same. 

Another scenario is for people who are self-employed. In that case, if you aren’t able to work, then there is no income coming in, and you won’t be able to rely on any benefits you may have had if you had worked for an employer. 

So, we think it’s actually more important than life insurance in some instances since it’s income protection. Without your income, it can be a struggle to get by, and it could become a hindrance towards getting better from your illness or injury. 


Disability insurance provides several key benefits for people, including families and individuals.  By offering benefit payments through disability insurance plans, there are several benefits available to help you as you work to overcome your disability. 

The following are 5 reasons why short-term disability benefits are usually paid: 

  1. Pregnancies
  2. Musculoskeletal disorders that affect knees, hips, shoulders, back and other parts of the body. 
  3. Injuries like breaks or fractures, muscle and ligament strains, or sprains.
  4. Conditions related to digestion, including gastritis and hernias.
  5. Mental health conditions including anxiety and depression.


The following are 5 reasons why long-term disability benefits are usually paid:

  1. Musculoskeletal disorders that affect knees, hips, shoulders, back and other parts of the body. 
  2. Cancer diagnosis.
  3. Injuries like breaks or fractures, muscle and ligament strains, or sprains.
  4. Mental health conditions including anxiety and depression.
  5. Circulatory conditions such as a stroke or heart attack


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Disability Insurance will help protect you from the loss of income if you become sick or unable to work for an extended period of time.  We’ll help get you the best rates and the coverage you need.

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