Your most valuable asset is not your portfolio; it is your ability to earn. Disability insurance protects that asset when your body or mind cannot perform as expected. It is not pessimism to buy it; it is respect for reality.

Short-term disability bridges weeks to months. Long-term disability spans years, sometimes until retirement age. Employer policies are a starting point—understand definitions, elimination periods (how long before benefits start), and benefit percentages. Typical coverage replaces 40–60% of income. If your budget depends on more, consider supplemental individual policies.

Definition matters more than slogans. “Own occupation” coverage pays if you cannot perform the duties of your specific job; “any occupation” is stricter, paying only if you cannot work in any reasonable job. For specialists—surgeons, pilots, executives—true own-occupation is worth the premium. Partial disability riders pay if you can work but at reduced capacity; recovery is rarely binary.

Benefits are taxable or not depending on who pays the premiums. If you pay with after-tax dollars, benefits are generally tax-free; if your employer pays, benefits are typically taxable. Run the math—net income matters. Choose elimination periods you can bridge with your emergency fund; longer waits lower premiums, but only if your savings can carry the gap.

Look for non-cancelable and guaranteed renewable clauses; they prevent the insurer from changing terms or canceling as long as you pay. Future purchase options allow increasing coverage as your income grows without new medical underwriting; your healthy years can buy your future self insurability.

Underwriting evaluates health, occupation, and hobbies. Be honest. Disclose conditions; nondisclosure can void claims. If you have pre-existing issues, expect exclusions or rated premiums. Work with a broker who represents multiple carriers; market differences can be wide.

Claims are marathons. Medical documentation is the spine; consistent treatment records matter. Communicate promptly, meet deadlines, keep copies. If benefits are denied, appeal with evidence and, if needed, legal counsel familiar with disability claims. Insurers are processes plus people; persistence is a strategy.

For the self-employed, disability insurance is a business continuity plan. Consider business overhead expense (BOE) policies to cover fixed costs if you are disabled—rent, utilities, staff salaries. Your customers care that the lights stay on; BOE is the backup generator.

Finally, pair disability coverage with healthy living and a career that allows flexibility. Prevention is not foolproof, but it tilts odds. Build an emergency fund to cover elimination periods. Keep skills current so that partial disabilities don’t end careers. The goal is not to fear the worst but to respect it enough to make it survivable.

Income is a river. Disability insurance is the dam and the sluice that keeps water flowing when landslides hit upstream. You sleep better when you know the lights will stay on even if the weather changes inside your body.