Learn about what's covered by disability insurance and what to expect.

Disability insurance is a very important coverage that can help protect people if they get hurt or sick and can't work. Disability insurance, unlike health insurance, is meant to replace lost income. It helps pay living bills and other costs while a person can't work. But what does disability insurance pay for? This piece will discuss the different kinds of disability insurance and what they usually cover.

First, you should know what the different kinds of disability insurance are. There are two main types: insurance for a short time and for a long time. Short-term disability insurance covers you for a short time, usually between a few weeks and six months. Long-term disability insurance, however, is meant to cover you for longer, possibly up to a few years, or even until you retire.

First, let's look at insurance for short-term impairment. This kind of insurance is usually offered by a company or bought independently. Short-term disability insurance can cover accidents, sicknesses, surgeries, and pregnancy, among other things, that keep a person from working. Depending on the contract, short-term disability insurance can cover up to 60–70% of a person's salary for some time.

As the name suggests, long-term disability insurance covers you for a much longer amount of time. Most people buy this kind of insurance independently, but some companies may include it in their benefits package. Long-term disability insurance can cover many of the same medical problems as short-term disability insurance, but the payments are meant to last much longer. Long-term disability insurance can pay payments for two years, five years, or until the age of retirement, depending on the contract.

Now, let's look at some specific situations that disability insurance can cover. Again, coverage depends on the policy, but here are some examples of illnesses that may be covered:

Musculoskeletal diseases are problems with the bones, muscles, and joints, like back pain, bulging discs, and arthritis.

Mental health problems: Mental diseases like sadness, anxiety, and bipolar disorder can be covered by disability insurance.

Cancer: If a person has cancer and can't work, unemployment insurance can replace their income.

Heart disease: Disability insurance can also cover heart attacks, strokes, and other health problems linked to the heart.

Problems during pregnancy: Women who have problems during pregnancy, like having to stay in bed or getting gestational diabetes, may be able to get unemployment payments.

Injuries: Disability insurance can pay for injuries like broken bones or headaches caused by accidents.

Of course, not all plans cover every condition, so before buying disability insurance, it's important to read the fine print and understand what is and isn't covered. Also, some policies may have waiting times before the benefits start. If you have a short-term disability, planning and other ways to get money is important.

It's also important to know that disability insurance can be "own-occupation" or "any occupation." Own-occupation sickness insurance pays out payments if a person can no longer do the tasks of their job. On the other hand, any-occupation disability insurance only pays out payments if a person can't work any job at all. Own-occupation disability insurance is usually more expensive, but it may be worth it for people with jobs requiring a lot of special training or hard labor.

In conclusion, disability insurance is an important coverage that can help people if they get hurt or sick and can't work. Short-term disability insurance can cover you for a few weeks to six months. Long-term disability insurance, however, can cover you for much longer, maybe even until you retire. Disability insurance can cover various health problems, such as musculoskeletal diseases, mental health problems, cancer, heart disease, complications during pregnancy, and accidents. Before buying disability insurance, it's important to understand all the terms, such as waiting times and limits on benefits. Lastly, own-occupation disability insurance might be a good choice for people with highly skilled jobs or jobs that are hard on the body.