The risk of a disabling illness or injury that prevents a worker from doing his or her job is more significant than most people realize. According to information compiled by the National Association of Insurance Commissioners (NAIC), a male U.S. worker at age 35 faces a one-in-five chance of disability taking him off the job for 90 days or longer during his working career. A 35 year-old woman, on the other hand, faces a nearly one-in-three risk of disability lasting at least 90 days before reaching retirement.

For most workers, the ability to earn a living is their most significant financial resource. A lengthy disability, therefore, can be financially devastating to workers and their families.

Individual disability income insurance is designed to replace a significant portion of income lost when illness or injury prevents the policyholder from earning a living. It is designed to help pay ongoing bills while the policyholder is recuperating and unable to do his or her job. Disability income insurance provides the insured and their family with income should he or she be unable to work due to illness or injury.

There are two types of disability policies: Short-Term Disability (STD) and Long-Term Disability (LTD):

• Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
• Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.

Disability policies have two different protection features

• Noncancelable means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives the insured the right to renew the policy every year without an increase in the premium or a reduction in benefits.
• Guaranteed renewable gives the right to renew the policy with the same benefits and not have the policy canceled by the company. However, the insurer has the right to increase premiums as long as it does so for all other policyholders in the same rating class.

Disability Income coverage comes in three forms. They are government sponsored programs like workers' compensation, employer – sponsored group disability plans and private individual disability income policies if the above two are absent.

In addition to the above, there are several options that can be considered when purchasing a policy. The insurance company gives the right to buy additional insurance at a later time.

The amount of benefits received from your insurance company is dependent on other benefits received because of your disability. If the policy specifies a target amount the insured will receive from all the policies combined, this policy will make up the difference not paid by other policies.