Disability Insurance
What is disability insurance and do I need it?
Disability insurance replaces a portion of your income (typically 60–65%) if illness or injury prevents you from working. 1 in 4 Americans will become disabled before retirement. 90% of disabilities are caused by illness — not workplace accidents. Workers' compensation only covers on-the-job injuries. SSDI denies 60–70% of initial applications and takes years to process.
Key Points
- Replaces 60–65% of your income if you can't work due to illness or injury
- 1 in 4 Americans disabled before retirement (SSA data)
- 90% of disabilities caused by illness, not workplace accidents
- Workers' comp only covers on-the-job injuries — not illness
- SSDI denies 60–70% of initial applications; average wait 18–24 months
- Individual disability insurance is portable and pays tax-free (if you pay premiums)