Disability insurance is designed to replace a percentage of your gross income (anywhere from 45-80%) should you become ill or injured and are unable to work. A 20 year old worker has a 30% chance of becoming disabled before retirement age! It makes sense to protect yourself and your family.

There are many companies providing disability insurance and every policy is different. Some disability insurance policies are more restrictive than others with their definition of disability. The following is a list of things to look for in a disability insurance policy:

• an income replacement percentage of 60-80%
• long-term disability that covers you to 65 years of age
• a liberal definition of disability that includes conditions like mental illness, stress disorders, severe migraine headaches and back pain
• what does the company define as income to be replaced? salary only? bonuses? commissions?
• what is the maximum monthly payment? Some companies offer policies specifically designed for professionals and high-wage employees. These may be called "own employment policies" meaning that you are considered "disabled" if you are unable to do your job not just any job.