A disability can strike at any age in any profession. For many people the loss of a paycheck can spell disaster for their family. Disability Insurance (DI) is “income protection” insurance. DI ensures that you will still have some kind of income if something happens to you When are unable to work. Most people can purchase DI through their workplace and some states even consider it a benefit, paid through income taxes.

There are very few disability insurance providers that offer non-cancellable (non-cancellable means the premium can never be changed), contracts. Many won’t offer individual disability policies past the age of 60. Although most policies don’t pay benefits past the age of 65, those that do will have limitations.

Some will offer only limited benefits, some might require that your health qualify every year, some only let you keep the policy for 2 more years. There can be other restrictions that aren’t mentioned here. If you already own DI, it is critical that you understand what happens when you turn 65.

Disability insurance is a type of insurance that provides income replacement if an individual becomes unable to work due to illness or injury. It can be short-term or long-term, offering financial support for a limited period or potentially for life, depending on the policy. 

Here's a more detailed explanation:
 

Purpose:
 

Disability insurance helps replace income lost when an insured person is unable to work due to a qualifying disability, such as injury, illness, or pregnancy. 

Types:

• Short-term disability (STD): Typically provides benefits for a limited period, often up to a year, and may cover conditions like surgery, childbirth, or short-term illness. 
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• Long-term disability (LTD): Designed to provide financial support for a longer duration, potentially for the rest of the insured's working life, and may cover conditions like chronic illness or long-term injury.

How it works:
 

• Premium: You (or your employer) pay a premium for the policy, and this payment determines the level of coverage. 
   
• Benefit: If you become disabled and can't work, the policy will provide a monthly income replacement, typically a percentage of your salary. 
   
• Waiting period: There's a waiting period before benefits begin, during which you're not receiving payments from the insurance company. 
   
• Definition of disability: Each policy defines what constitutes a disability for receiving benefits. 
   

Sources of disability insurance:

• Individual policies: Purchased directly by an individual to ensure they have coverage. 
   
• Employer-sponsored policies: Provided by employers as part of a benefits package. 
   
• Government programs: Social Security Disability Insurance (SSDI) and other state-level programs.