Disability insurance is a type of insurance that pays a portion of your income if you become unable to work due to an illness or injury. Disability insurance can help you cover your essential expenses and maintain your standard of living when you are unable to earn a paycheck.

The benefits of disability insurance coverage depend on the type and amount of coverage you have, but some common benefits are:

• Replacing a percentage of your income, usually between 50% and 70%, up to a maximum amount per month.
• Providing tax-free benefits if you pay the premiums with after-tax dollars.
• Allowing you to choose the waiting period before benefits start and the duration of benefits.
• Offering additional features such as cost-of-living adjustments, residual benefits, or return-to-work incentives.

Some examples of situations where disability insurance coverage can be beneficial are:

• You suffer a serious injury in a car accident and need several months of rehabilitation before you can resume your work.
• You develop a chronic condition such as arthritis or diabetes that limits your ability to perform your job duties.
• You experience a mental health issue such as depression or anxiety that affects your productivity and attendance at work.

In these cases, disability insurance can provide you with financial security and peace of mind while you focus on your recovery and well-being.