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 Massachusetts, disability insurance is regulated under both state and federal laws. Short-term disability insurance is not mandated by the state, but employers may offer it as a benefit. This type of insurance typically covers a portion of the employee's salary for a temporary period, usually ranging from three to six months. Long-term disability insurance, on the other hand, provides income replacement for longer periods, potentially until retirement, but is less commonly offered by employers. Individuals in Massachusetts can purchase long-term disability insurance policies on their own. Additionally, some may opt for supplemental long-term disability insurance to cover any financial gaps. It's important to note that while Massachusetts does not have a state-mandated disability insurance program, it does require employers to provide access to a state-regulated Paid Family and Medical Leave (PFML) program, which offers partial wage replacement for various medical and family-related absences, including one's own health condition.