Who this is for: People in occupations where even a minor injury can stop the paychecks, and self-employed people who don't have disability coverage through an employer.
Who needs disability coverage
Think about what would happen if you couldn't work for three months. For a surgeon, a mechanic or an artisan, something as ordinary as a broken arm can stop earnings completely. If your household depends on your income and your savings wouldn't cover a long gap, disability insurance is worth a look.
Elimination period
The elimination period, also called the waiting period, is the time between the start of a disability and the start of benefit payments. Common options include 30 days and 90 days, and some policies offer longer waiting periods.
The right choice depends on your cash reserves. A shorter elimination period means benefits start sooner. A longer one means relying on your own savings for longer, and depending on the policy it may lower the premium. Dagan helps you match the waiting period to how long you could cover your bills on your own.
Benefit duration
The benefit duration is how long payments continue once they start. Depending on the policy, it can range from short periods, such as 90 days or 2 years, to long-term coverage that pays until retirement age.
| Setting | What it controls | Examples (availability varies by policy) |
|---|---|---|
| Elimination period | How soon benefits start after a disability begins | 30 days, 90 days, longer |
| Benefit duration | How long benefits are paid | 90 days, 2 years, to retirement age |
Short-term vs long-term disability
Short-term disability generally covers shorter absences, with benefits that start quickly and last for a limited period. Long-term disability generally starts after a longer waiting period and can pay for years, in some cases until retirement age. Which type, or which combination, fits you depends on your job, your savings and any coverage you already have through work.
Options for the self-employed
If you work for yourself, you may not have any disability coverage unless you buy your own. Dagan can compare individual disability options built around your occupation and income. See also the guide for self-employed and 1099 workers.
Plan availability, benefits and costs vary by carrier and policy.