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Disability Insurance: What It Covers and How Much It Costs (U.S. Guide)

Disability insurance protects your income if an illness or injury prevents you from working. It’s one of the most overlooked but essential forms of financial protection.

This insurance replaces a portion of your income—typically 40% to 70%—while you recover or face long-term limitations.

Evaluate your monthly expenses, job type, and employer benefits to determine how much coverage you need and whether you require short-term, long-term, or both.

Two main types of disability insurance:
• Short-Term Disability (STD): covers 3–6 months
• Long-Term Disability (LTD): can cover years or until retirement

Common conditions covered include injuries, chronic illnesses, surgeries, mental health conditions, and unforeseen medical issues.

Review your policy every 1–2 years or after major job or income changes.

As medical costs rise and income protection becomes more important, disability insurance has gained popularity among U.S. workers.

Availability and pricing vary by state, job risk level, and employer participation.

Disability insurance ensures financial stability even when health issues interrupt your ability to earn income.

Key Details
• Typical coverage: 40%–70% of income
• Types: short-term & long-term
• Cost: 1%–3% of annual salary
• Best for: anyone relying on their income

Disability insurance provides peace of mind and financial protection during life’s most difficult challenges. Evaluate your needs and secure appropriate coverage.

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