Disability insurance: What you need to know Understand your coverage options before the unexpected happens. If you and your family rely on your income, disability insurance can help provide financial stability if you’re unable to work due to a disability. While many think their chances of becoming disabled are slim, the reality is that 1 in 5 Americans live with disabilities.You never know when you might suffer a disability, so take steps to protect your family now.Buy at work or on your own?Work-based disability insurance is convenient to purchase and can be quite reasonable. The downside: The coverage may not be portable, and you may have to forfeit it if you change jobs. What’s more, only about a quarter of private sector workers have access to short- and long-term disability coverage.An individual policy may have more flexibility and give you more options. It stays in place no matter how often you change jobs, and you can choose the period of time you want coverage in place.Coverage optionsThere are two basic types of policies: short term and long term.Short-term disability insurance: As the name implies, this type of policy makes up for lost income for six months or less. It typically kicks in after you’ve exhausted other workplace benefits like paid time off and sick leave.Long-term disability insurance: If your disability lasts longer, you’ll need to move to long-term disability. This policy pays a portion of your income, typically 50% to 70%, for periods of a few years or until retirement, depending on the type of policy you have.Not all policies are available in every state. Talk to your State Farm® agent about how to coordinate short- and long-term policies and protect your income.