What is disability insurance? Reassurance and income when needed

Life is full of surprises. Sometimes an unexpected event can occur that has consequences you couldn’t have prepared for, like getting hurt and becoming unable to work. Generally, no work means no income, and that can mean trouble — unless you’re covered by disability insurance.

Keeping you in the black when you’re not in the pink

What is Disability insurance? Very simply, it’s a policy that can pay a portion of lost income when you’re injured and unable to work. Depending on the type of insurance — short-term or long-term, for example — the coverage can last from a few weeks to even years, and can help you:

• Protect your income
• Continue to provide for your family
• Avoid tapping into retirement savings to cover basic living expenses
• Stay focused on getting better
• Get back to work sooner

Disability insurance pays you directly, so you can use the money as you see fit. It’s usually offered through employers, and the premiums may be paid by you, your employer or both. With this kind of income protection in place, you will be better prepared to handle that illness or injury so it doesn’t mean total financial disruption. If you don’t have disability insurance, or if you’d like more information about your plan, start by talking to your company’s HR coordinator.