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 Vermont, disability insurance is designed to provide financial support 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 brief period, usually between three to six months. This type of insurance is often available through employers, sometimes as a free benefit or for a minimal cost. On the other hand, long-term disability insurance offers income replacement for more extended periods, potentially lasting for years or until retirement age. Employers less commonly provide long-term disability insurance, but individuals can purchase private policies. Given that long-term disability benefits may not fully cover all expenses, some individuals opt to buy supplemental long-term disability insurance policies for additional security. It's important to note that the specifics of disability insurance coverage, including the duration and amount of benefits, can vary based on the policy and the insurer. Individuals should review their insurance policies and consider their needs to ensure adequate coverage.