Most people insure their car, home, and health — but forget to protect their paycheck. Yet statistics show that 1 in 4 workers will become disabled before reaching retirement age. Disability insurance replaces a portion of your income if illness or injury prevents you from working.
Short-Term Disability Insurance (STD)
Short-term disability insurance kicks in quickly — usually within 0–14 days of a qualifying disability — and replaces 60–70% of your income for a limited period, typically 3–6 months. It's designed to cover temporary conditions like recovery from surgery, a serious illness, or complications during pregnancy and maternity leave.
Many Massachusetts employers offer STD as a group benefit. If your employer doesn't provide it, individual policies are available.
Long-Term Disability Insurance (LTD)
Long-term disability begins after short-term coverage ends — the "elimination period" is typically 90–180 days. LTD can replace income for several years or even until retirement, depending on the policy. It covers serious conditions like cancer, heart disease, back injuries, and mental health disorders.
Own-Occupation vs. Any-Occupation
The most important policy distinction is the definition of disability:
- Own-occupation: Pays if you can't perform the duties of your specific job — ideal for professionals like doctors, lawyers, and engineers
- Any-occupation: Pays only if you can't work in any job — a stricter and cheaper standard
How Much Coverage Do You Need?
Most experts recommend replacing at least 60–70% of your gross income. Factor in your monthly expenses, existing savings, emergency fund, and how long you could survive without income when choosing your benefit amount and elimination period.
Individual vs. Group Disability Insurance
Group disability through your employer is convenient and typically cheaper, but coverage may be limited and not portable if you change jobs. Individual policies offer stronger "own-occupation" definitions and stay with you regardless of employment. Valorin Insurance can help you evaluate both options and fill any gaps in your coverage.