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 New York, disability insurance is regulated by both state and federal laws. Short-term disability insurance in NY is mandated by the state, requiring employers to provide coverage for all eligible employees. This coverage typically offers benefits for up to 26 weeks and is designed to replace a portion of the employee's income if they are unable to work due to a non-work-related injury or illness. On the other hand, long-term disability insurance is not required by New York state law to be provided by employers, but individuals can purchase it privately. Long-term disability insurance policies vary widely in terms of the length of coverage, the percentage of income replaced, and the waiting period before benefits begin. Additionally, some New Yorkers may be eligible for federal benefits through Social Security Disability Insurance (SSDI) if they have a qualifying disability and have paid into the Social Security system. It's important for individuals to review their disability insurance options, including any employer-provided plans, private insurance policies, and potential supplemental insurance, to ensure adequate coverage in the event of a long-term disability.