Income loss is scary to think about, but it can happen to anyone. Whether it be a freak accident, physical injury, heart attack, or cancer, a person can become disabled in an instant, preventing them from being able to work. Disability insurance helps cover some of your income if this happens to you. The younger and healthier you are, the easier it is to qualify for a policy. 

Long-Term Disability Insurance

Long-term disability insurance consists of anything over two years and up until retirement age, but can be extended into retirement if desired. It is recommended to get coverage for around 60-70% of your income. You should get coverage for 5 years at the least to cover long-term loss of income. Long-term insurance typically costs about 1-3% of your yearly income and you receive your first payout after about 3-6 months. It is a good idea to look into long-term insurance if you rely heavily on your income and do not have savings to replace it in the event of an accident.

Short-Term Disability Insurance

With short-term disability insurance, payments only last for a few months to a year. You are able to get your payout quicker than with long-term insurance because the elimination period is typically around two weeks. It is recommended to get short-term disability insurance if it is offered by your employer. It will cover around 60-70% of your salary and usually lasts 3-6 months, depending on the policy. It costs about 1-3% of your yearly income, but tends to be more expensive than long-term coverage. 


While disability insurance premiums for both short- and long-term coverage usually ranges from 1-3% of your income, you will pay less for a long-term policy with a longer elimination period. The cost of your premium also depends on factors such as age, smoking habits, occupation, and how much money you make. 

Do I Need Disability Insurance?

Absolutely. Everyone needs disability insurance, regardless of what type of job you have. Yes, you run a higher risk of becoming disabled if you work with heavy machinery on a daily basis rather than if you work a desk job, but you should still get disability insurance to protect your income. Keep in mind that if you work a higher-risk job, you will see higher premiums than those who work less risky jobs. 

Alexander Financial Services

Alexander Financial Services was first established in 2009 and has since then been a client-driven business that is dedicated to helping our Greenville, NC clients get the insurance coverage they need. If you are interested in learning more about our versatile insurance options, don’t waste another moment. Whether you’re in the market for health insurance or long term care, you can rely on our certified agents to develop the perfect policy at the perfect rate. If you have any additional questions, be sure to contact David Alexander today!