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 Hawaii, disability insurance is regulated under state law and provides financial benefits to individuals who are unable to work due to injury or illness. Short-term disability insurance typically covers a significant portion of an individual's income, up to 80%, for a limited period, usually between three to six months. In Hawaii, employers are required to provide temporary disability insurance (TDI) to their employees, which functions similarly to short-term disability insurance and is mandated by the Hawaii Temporary Disability Insurance Law. Long-term disability insurance, on the other hand, offers income replacement for longer periods, potentially lasting years or until retirement. This type of insurance is less commonly offered by employers in Hawaii, but individuals can purchase private long-term disability policies. Additionally, some individuals opt for supplemental long-term disability insurance to ensure they have adequate coverage to meet their expenses. It's important to note that the specifics of coverage, including the percentage of income replaced and the duration of benefits, can vary based on the policy and the insurer.