Why income is your most important asset
If you're 35 and earn $80,000, you'll likely earn more than $3 million over your career. That's the asset disability insurance actually protects. A house can be rebuilt and a car replaced — but a long-term disability can interrupt every plan you've made, from mortgage payments to retirement contributions.
The Social Security Administration reports that 1 in 4 of today's 20-year-olds will experience a disability before reaching retirement age. Personal disability insurance is how you make sure a disability doesn't cost you everything else.
Short-term vs. long-term disability
- Short-term disability (STD) — replaces 60–70% of income for a few weeks to several months. Often offered through employer benefits.
- Long-term disability (LTD) — kicks in after STD ends and pays a monthly benefit until you can return to work, retirement age, or for a defined period (5, 10, 20 years).
Most professionals benefit from both — STD covers acute illness or short recoveries; LTD protects against the rare but devastating long disability.
Definition of disability matters more than the premium
The single most important policy term is how the policy defines "disability." The two main definitions are:
- Own-occupation — pays if you can't perform the duties of your specific profession, even if you could do other work. Critical for surgeons, attorneys, executives, skilled trades.
- Any-occupation — pays only if you can't perform any job for which you're reasonably qualified. Cheaper, but a much higher bar to claim.
We compare definitions carefully — the same monthly benefit can be radically different in real-world value depending on this single clause.
Business overhead expense (BOE) coverage
If you own a practice or small business, your disability isn't just a personal income loss — it's a business continuity risk. Business overhead expense coverage reimburses your business for fixed expenses (rent, utilities, employee salaries, lease payments) while you recover. It pairs with your personal disability policy and keeps the doors open.
Frequently asked questions
Doesn't my employer's group disability cover me?
Maybe — but typical group policies replace 60% of base salary, are taxable when premiums are employer-paid, and use a stricter "any-occupation" definition after 24 months. Most professionals supplement group LTD with an individual policy to reach 70–80% replacement and lock in own-occupation language.
What about Social Security Disability?
Social Security Disability Insurance (SSDI) is hard to qualify for, slow to approve, and pays a relatively modest benefit. It's a safety net of last resort, not a replacement for private disability coverage.
How much benefit can I qualify for?
Carriers will typically issue benefits up to 60–70% of pre-tax income, sometimes higher with riders. Self-employed and high earners benefit from additional layers and supplemental policies — we'll model the maximum responsible coverage.
Are benefits taxable?
If you pay premiums with after-tax dollars, benefits are received tax-free. If your employer pays the premium pre-tax, benefits are taxable income. This dramatically affects how much benefit you actually need.
Can I get coverage if I have a pre-existing condition?
Often yes — though specific conditions may be excluded. Carriers vary widely in their underwriting; we know which markets are most favorable for your situation.