Disability Insurance

Disability Insurance provides employees with an income should they become unable to work due to sickness or injury. It helps protect against financial catastrophe by providing an income that meets daily expenses.

Employer-paid and government-sponsored programs are generally cost-free to the recipient, although covering only certain categories of workers. Disability coverage comes in two forms:

  • Short-Term Disability (STD) coverage provides benefits for a specified period of time, usually 13, 26 or 52 weeks - up to a maximum of 5 years
  • Long-Term Disability (LTD) coverage provides benefits that typically start after a 90-day waiting period and may continue until the employee reaches age 65

Disability insurance can also take the form of private policies (also called voluntary plans) that protect income when there is no applicable employer or government program, or when those programs do not adequately meet income needs.