Disability insurance provides income to individuals unable to work due to illness or injury, ensuring financial stability during these times. It replaces a portion of the insured’s income, typically between 50% and 70%, helping cover essential living expenses like mortgage, utilities, and groceries. There are two main types: short-term disability insurance, which covers temporary disabilities for a few months to a year, and long-term disability insurance, which provides benefits for extended periods, sometimes until retirement. This insurance is a vital safety net, offering protection against unexpected events such as accidents or illnesses. When choosing a policy, it’s important to understand how “disability” is defined, the income replacement percentage, the elimination period before benefits start, and the length of the benefit period. Be mindful of any policy exclusions or limitations.