Disability insurance replaces income when you cannot work, and it comes in two durations that solve different problems. Short-term covers a rough few months; long-term covers the years-long or permanent loss that can actually undo a financial plan. Most people focus on the wrong one.
Short-term disability pays a portion of income for a limited period, often a few months, after a brief waiting period, covering things like recovery from surgery or a temporary injury. It is useful, and often provided through an employer, but the amounts and durations are modest. It bridges a gap; it does not protect against catastrophe.
Long-term disability begins after a longer elimination period and can pay for years or until retirement age. This is the coverage that matters most, because the financially devastating scenario is not a few months off work; it is a disability that ends a career. A gap here is the one that turns a health event into a financial one, which is why long-term coverage deserves the closer look.
For either, the details govern the outcome: the elimination period before benefits start, the benefit period they last, the percentage of income replaced, and, crucially, the definition of disability, own-occupation versus any-occupation. As with all disability coverage, the definition can matter more than the benefit amount.
Cover the months, but do not skip the years.
This is general information, not personalized insurance advice. Coverage terms, definitions, and availability vary by policy and provider.