Fine Print Guide

Health, life and income · Short-term, long-term

Disability insurance

Replaces part of your paycheck, usually 50 to 70%, if an illness or injury keeps you from working, whether it happened at work or not.

Who it's for
Anyone who relies on their paycheck. Illness is far more common than accidents as a cause.
Is it required?
Not by law, except that a few states, including California, New York, New Jersey, Rhode Island and Hawaii, run short-term disability programs paid through payroll.

Usually covered

  • Illness or injury that stops you from working, on or off the job
  • Pregnancy and recovery from childbirth, under most short-term policies
  • Part of your income, after the elimination period

Usually not covered

  • The first days or months, the elimination period
  • Your full salary
  • Pre-existing conditions, in the first year of many policies
  • Self-inflicted injuries

Real-life examples

You break your leg skiing and can't work for 10 weeks.

Usually covered

Short-term disability pays part of your salary after its waiting period, often one to two weeks. Workers' comp wouldn't apply, because it happened off the job.

A back injury keeps you from working for two years.

Usually covered

Long-term disability usually starts after 90 or 180 days and can pay for years. Check whether it pays if you can't do your job ("own occupation") or only if you can't do any job.

Check your own policy

Find these on your policy or declarations page, or ask your agent:

  • The waiting period
  • The percentage of salary and the monthly maximum
  • "Own occupation" or "any occupation"
  • Whether the benefit is taxable (it usually is if your employer paid the premium, or you paid it with pre-tax money)

Not sure where to look? See how to read your policy.

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