Income Protection Through Disability Insurance: A Financial Safeguard

Disability insurance emerges as a critical yet often overlooked component of financial planning, designed to shield individuals from income loss due to unforeseen health disruptions. Contrary to popular belief, disabilities are not predominantly caused by workplace accidents—illnesses account for 90% of cases. With one in four 20-year-olds likely to face a year-long disability before retirement, the need for protection is undeniable.

Short-Term Disability (STD) and Long-Term Disability (LTD) insurance serve as complementary solutions, offering wage replacement during temporary or prolonged inability to work. STD typically covers immediate needs, while LTD addresses extended absences, ensuring financial stability during recovery. The market for such products reflects broader trends in risk management, where decentralized finance (DeFi) and blockchain-based solutions could eventually disrupt traditional models.