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 Utah, 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 offered by employers. Individuals in Utah may purchase long-term disability insurance on their own to ensure income continuity in case of a long-term disability. Additionally, some individuals opt for supplemental long-term disability insurance to cover any financial gaps. It's important to review the specific terms and conditions of each policy, including coverage limits, waiting periods, and the definition of disability used, to understand the extent of protection provided. State laws may mandate certain provisions in insurance policies, and the Utah Insurance Department can provide more information on regulations and consumer rights related to disability insurance.