Disability Insurance

Disability insurance provides income to workers who become disabled and are not able to perform their work duties. The insurance is often a percentage of a worker’s income rather than the full amount. Some companies may offer disability insurance to their employees at a significant discount. Disability insurance can also be purchased by individuals, usually at a higher cost.

There are two types of disability insurance — short-term and long-term. Short-term insurance is for coverage between three to six months. Long-term insurance is for coverage greater than six months. The exact coverage period and cost will vary by the insurance company.

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