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 Montana (MT), disability insurance is regulated under both state and federal laws. Short-term disability insurance typically covers a significant portion of an individual's income for a brief period, usually between three to six months, and is often provided by employers as a benefit. Long-term disability insurance, on the other hand, offers income replacement for a more extended period, potentially lasting until retirement, but is less commonly provided by employers. Individuals in Montana may purchase long-term disability insurance on their own. Additionally, some may opt for 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 disability insurance policies, including the coverage percentage and duration, can vary and should be reviewed carefully. State laws in Montana may provide additional regulations on these insurance policies, and it's advisable to consult with an attorney or insurance expert to understand the full scope of disability insurance coverage and rights in the state.