Disability insurance will pay a portion of your income if you are unable to work for an extended period of time due to an injury or illness. There are two types of disability insurance: short-term disability insurance and long-term disability insurance. As the name implies, short-term disability insurance replaces much of your paycheck (up to 80%) for a short period of time—usually three to six months—and is often available through your employer as a free employment benefit or at low cost. And long-term disability insurance replaces some of your paycheck if you are unable to work for years or decades—sometimes until retirement. Long-term disability insurance is not often provided by employers—but you may purchase an individual policy. Because long-term disability insurance often does not pay enough to cover your expenses, some people purchase supplemental long-term disability insurance policies.

In Connecticut (CT), disability insurance is regulated at both the state and federal levels. Short-term disability insurance is not mandated by the state, but employers may offer it as a benefit to their employees, often covering up to 80% of the employee's paycheck for a temporary period, typically ranging from three to six months. Long-term disability insurance, on the other hand, provides income replacement for longer periods, potentially lasting years or until retirement age. This type of insurance is less commonly provided by employers in Connecticut, but individuals can purchase their own policies. Additionally, some individuals opt to buy supplemental long-term disability insurance to ensure they have adequate coverage to meet their expenses in case of a long-term disability. It's important to note that the specifics of coverage, including the percentage of income replaced and the duration of benefits, can vary significantly between policies. Individuals considering disability insurance should review policy details carefully and may consult with an attorney to understand the implications of Connecticut's insurance regulations on their coverage.