Disability Insurance

Disability insurance is coverage that pays out regular paychecks in case someone becomes too ill or disabled to keep working. There are several different disability insurance types, and they all offer slightly different coverage and benefits for various situations.

Read on to learn more about the various types of disability insurance coverage options.

Long-Term Disability Insurance

This kind of insurance is a type of coverage you can purchase that pays out monthly benefits if you become too ill or disabled to work. The benefit period can last two, five, or ten years, or even until retirement. The monthly benefit is usually up to 60% of gross monthly income, and the yearly cost is generally 1 percent to 3 percent of an annual salary.

Long-term disability insurance is the most cost-effective and well-rounded type of disability insurance, plus it can be purchased whether you work for an employer or are self-employed.

Business Overhead Expense

Also known as BOE, this type of insurance is made specifically for business owners who pay for a business’ overhead, such as rent, utilities, employee salaries, postage, payroll taxes, and more, if you become ill or disabled. Business overhead expense insurance needs to be purchased in addition to or combined with a long-term policy, as BOE insurance doesn’t cover your salary and expenses.

Workers’ Compensation

Also known as workers’ comp, this is a type of insurance that an employer is required to have in every state. Many people assume that workers’ comp is a substitute for disability coverage. However, workers’ compensation pays out a monthly benefit if an employee cannot work, but only if the employee’s injury occurred at work.


Even though it has “insurance” in the title, self-insurance is not really insurance. Instead, this is more of a savings account. Almost half of all Americans only half enough to handle a $1,000 emergency, such as a medical bill. Self-insurance is preferred by people who want to use savings to replace income in the event of illness or disability.

This kind of disability insurance looks like an attractive option to people who don’t want to pay disability insurance premiums, but relying on savings to make up for income comes with risks because you don’t know what might happen.

About InsureMyWorkComp & Their Workers Comp Solutions

InsureMyWorkComp is a digital brokerage that helps clients find the right workers’ compensation solution for their business needs, such as occupational accident insurance. Unlike other online platforms, we will help you to work with an agent who can provide you the right solution for your risk profile. Our staff has over 50 years of workers’ compensation underwriting and sales experience, and we are confident that we will provide you the support that you need. For more information or to get a quote, contact us today at (855) 340-9138.