DISABILITY INSURANCE
More than 1 in 4 people will face a disability before retirement. Protect your income and secure your future with disability insurance—it only takes a few minutes to get started!
What is Disability Insurance?
Disability Insurance (DI), also known as disability income insurance or income protection, provides financial security by replacing a portion of a worker’s income if they become unable to perform their job due to a disability.
This can include conditions such as psychological disorders affecting emotional stability or physical impairments caused by injury, illness, or other medical conditions. Coverage typically includes paid sick leave, short-term disability (STD), and long-term disability (LTD) benefits to help maintain financial stability during periods of inability to work.
In the U.S., a disabling accident occurs approximately every second, with 18.5% of Americans currently living with a disability. Additionally, 1 in 4 workers will experience a disabling injury before reaching retirement, highlighting the critical need for income protection.
Types of Disability Insurance
Individual Disability Insurance
For those without employer-provided disability benefits or self-employed individuals seeking coverage, individual disability insurance offers essential income protection. These policies can be customized, but premiums vary based on several factors, including the insurer, occupation, location, and policy terms.
Key factors affecting cost:
- Monthly Benefit Amount – Higher benefits lead to higher premiums.
- Benefit Duration – Policies that pay out for longer periods cost more.
- Elimination Period – Shorter waiting times before benefits begin result in higher premiums.
- Definition of Disability – Broader coverage (e.g., covering more conditions) increases costs.
Choosing the right policy ensures financial stability in case of an unexpected disability, especially for those relying on their own income without employer-backed coverage.
High-Limit Disability Insurance
High-limit disability insurance ensures that individuals maintain up to 65% of their income in the event of a disability, regardless of their earnings level. This type of coverage is typically purchased as a supplement to standard disability insurance, providing additional financial protection for high-income earners.
Key Features:
- Supplemental Coverage – Enhances standard disability benefits to maintain income stability.
- Higher Benefit Limits – Offers additional benefits ranging from $2,000 to $100,000 per month.
- Increased Policy Limits – Some insurers provide up to $30,000 in single-policy or group long-term disability coverage.
High-limit disability insurance is ideal for executives, business owners, medical professionals, and other high-income earners who need comprehensive income protection beyond standard disability policies.
Key-Person Disability Insurance
Key-Person Disability Insurance protects a business from financial loss if a vital employee becomes disabled and unable to work. This coverage provides benefits that help the company manage disruptions and maintain operations.
How It Works:
- Short-Term Disability – Benefits can be used to hire a temporary replacement if the employee is expected to recover.
- Permanent Disability – Funds help cover recruitment, training, lost revenue, and other costs associated with finding and integrating a new key employee.
- Financial Stability – Helps offset losses from reduced productivity or business disruption.
This coverage is essential for businesses that rely on specific individuals for leadership, client relationships, or specialized expertise.
Business Overhead Expense (BOE) Disability Insurance
Business Overhead Expense (BOE) insurance helps cover essential operating costs if a business owner becomes disabled and unable to work. This ensures that the business can continue running smoothly while the owner recovers.
Eligible Expenses Covered:
- Rent or Mortgage Payments – Keeps the business location secure.
- Utilities & Leasing Costs – Covers electricity, water, internet, and office space leases.
- Payroll & Employee Benefits – Ensures staff salaries and benefits remain uninterrupted.
- Business Insurance Premiums – Maintains necessary coverage.
- Accounting & Billing Services – Keeps financial and collection processes running.
- Property Taxes & Other Fixed Expenses – Helps avoid financial strain.
BOE insurance is ideal for small business owners, medical professionals, and solo practitioners who rely on their business income to cover fixed costs. It provides short-term financial stability, allowing the business to remain operational until the owner recovers or makes necessary adjustments.
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