Disability Insurance for Company Employees and the Self-Employed

In the event of a long-term illness or injury, disability insurance pays a portion of your income. Most disability policies are either employer-paid or individual disability income insurance policies. In the case of the latter, the premiums listed in insurance quotes will be based on age, gender, occupation, and the percentage of potential lost income that you need to cover. In general, the higher risk your occupation, the higher the premium listed in your insurance quote. For example, a firefighter would pay a higher premium for disability insurance than a web developer.

Most employers offer either short-term or long-term disability insurance. Short-term can last as long as a few days to several months, while long-term disability insurance could last anywhere from five years to life and pay up to 60% of your salary, according to the Insurance Information Institute.

If you’re self-employed, you will have to purchase an individual disability income insurance policy. Although the premiums on individual plans can be quite steep, there’s some latitude to be gained from an individual policy. Insurance online quote providers may not mention that you have the option to retain your policy if you later become employed by someone else. And the additional income insurance gained by an individual policy could help make up some of the difference between your employer’s insurance and your income if you become unable to work.

Don’t let an accident or illness throw you into financial instability. Choose disability insurance that will protect you and your income.