In its simplest form, a disability is the inability to perform your job due to a sickness or an injury. Some disabilities, like pregnancy or a sprained ankle, are for such a short period of time that it is more expensive to insure them than to lose the income. Other, longer-term disabilities, like a heart attack or becoming paralyzed, may keep you from working for months, years or even the rest of your life.

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A long-term disability can have a huge impact on your financial situation because your income would drop or disappear while your expenses continue or even increase. The risk of long-term disability is well worth insuring.

Protecting Yourself Against a Disability

One way is with disability income insurance, which provides benefits designed to replace your income after a serious sickness or injury. Disability income insurance programs include four main points:

• Benefit Amount — You can choose to replace a percentage of your current monthly income.

• Elimination Period — All disability income insurance policies have an "elimination period," similar to the deductible for medical and car insurance. This is the length of time you must be disabled before you would become eligible for benefits, typically 30, 90 or 180 days.

• Benefit Period — Once you qualify for disability, the policy will pay you monthly benefits for a certain period of time. Based on your disability and your policy, monthly benefits may be payable for only one or two years, or until you reach age 65 or older.

• Definition of Disability — The policy has a "definition of disability" which defines disability relative to your ability to work and/or your ability to work in your current occupation. The definition of disability is one of the most critical features of a disability income policy, and is something you should review carefully before purchasing a policy.

Disability – A possibility you need to consider.

You probably take plenty of precautions in your daily life…you wear your seatbelt, you childproof your home, you have a working smoke detector. Still, no matter how prepared you are, accidents do happen – at home, on the road, at work and at play. And disability can be the outcome. A sports injury, a car accident, an illness…a problem pregnancy, a heart attack, a serious back injury – any of these situations can result in your not being able to work at your usual job. That, in turn means a loss of income, even if you have a relatively sedentary job.

According to a recent study, most people estimate they have only a 16% chance of becoming disabled during their working years* - in spite of the following startling facts**: If you're under age 35, chances are one in three that you will be disabled for at least six months during the course of your career. Men have a 43% chance of becoming seriously disabled during their working years. Women have a 54% chance. At age 42, it is four times more likely that you will become seriously disabled than that you will die during your working years.

Counting on your group DI? Take a closer look. Your employer – or association – sponsored group plan may not be all you think it is. It might, for example, insure you only if you are totally disabled – even though a partial disability could mean you were reduced to earning part-time income. Plus, one overwhelming advantage of personal DI insurance is that it cannot be reduced or terminated if you leave your current employer. You pay the premiums, you own the policy -- and benefits are paid to you directly.

Why You Should Consider Your Own Coverage

• Save on Taxes — When you buy your own insurance with after-tax income, 100% of the benefits are income tax free.

• Cover Your Actual Earnings — Cover a higher percentage of your income with insurance that covers bonus and/or commission income.

• Choose the Disability Definition — Many employer-sponsored disability insurance programs use a restrictive definition of disability. Your policy can be much less restrictive (and therefore, likely to provide benefits when you need them).

• It Stays With You — When you change jobs, you won't have to worry if there is a gap before you are eligible for benefits at the new employer.