What type of insurance covers a portion of your take-home pay if you are unable to work?

Long-term disability insurance is designed to provide financial support by replacing a significant portion of your take-home pay if you are unable to work for an extended period due to a disability. This type of insurance typically kicks in after short-term disability coverage expires and can last for several years or until retirement age, depending on the terms of the policy. It's crucial for individuals who may face long-term health issues that prevent them from performing their job duties, ensuring they maintain financial stability during such challenging times.

Short-term disability insurance also covers a portion of take-home pay but usually applies for a limited duration, often up to six months. Health insurance, on the other hand, primarily focuses on managing medical expenses and does not provide income replacement. Workers' compensation insurance is specifically for work-related injuries or illnesses and covers medical expenses and lost wages, but it only applies under certain conditions related to the workplace. Hence, long-term disability insurance is the best choice for ongoing income replacement during extended periods of inability to work.