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Disability Insurance Explained: Protect Your Income
Short-term vs long-term disability insurance, own-occupation coverage, and how much you need.
July 9, 20267 min readBy MyWealthForge
Key Takeaways
- 11 in 4 workers will experience a disability before retirement.
- 2Long-term DI replaces 60–70% of income.
- 3Own-occupation policies are best for specialists.
- 4Employer coverage is often insufficient — supplement privately.
Your ability to earn income is your largest asset — more valuable than your home or 401(k). Disability insurance protects it.
Build emergency fund as first line of defense.
Short vs Long Term
Short-term: 3–6 months, often employer-provided. Long-term: to age 65, replaces income if you cannot work in your occupation.
How Much Coverage
Target 60–70% of gross income. Coordinate with employer benefits to avoid over-insuring.
Compare life insurance needs.
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