Help Center & FAQ

Disability insurance is a form of protection that replaces a portion of your income if you become unable to work due to a covered illness or injury. It can come from federal programs (like SSDI), state-mandated programs (like California SDI), or private insurance policies purchased individually or through an employer.

Short-term disability (STD) insurance typically covers the first few weeks to months of a disability — usually up to 6 months. Long-term disability (LTD) insurance kicks in after the short-term period ends and can last for years or even until retirement age, depending on the policy.

SSDI is a federal program administered by the Social Security Administration. It provides benefits to workers who have paid Social Security taxes and who have a qualifying disability that prevents them from performing substantial gainful activity. SSDI has strict eligibility requirements including work credits and medical eligibility.

As of 2024, 11 states plus D.C. have mandatory state disability insurance programs: California (SDI), New York (DBL), New Jersey (TDI), Rhode Island (TDI), Hawaii (TDI), Massachusetts (PFML), Connecticut (PFML), Washington (PFML), Colorado (FAMLI), Oregon (PFML), and Washington D.C. (UPIL).

You can file for SSDI online at ssa.gov, by calling 1-800-772-1213, or at your local Social Security office. You will need your Social Security number, medical records, work history, and information about your condition. The process typically takes 3–6 months for an initial decision.

The elimination period (also called the waiting period) is the time between when your disability begins and when your insurance benefits start paying. For most private disability policies, this is 7–90 days. For SSDI, there is a mandatory 5-month waiting period after your established onset date.

It depends. If you pay the premiums with after-tax dollars (individually owned policies), benefits are generally tax-free. If your employer pays the premiums and the benefit is included in your income (employer-provided coverage), the benefits may be taxable. SSDI benefits may be taxable depending on your total income.

This varies by policy. Individual disability policies typically replace 45–65% of your pre-disability income. Employer-sponsored group policies usually replace 50–70%. SSDI replaces a percentage based on your average lifetime earnings, generally replacing less for higher earners.