The Disability Gap

Here's the insurance almost nobody has but probably needs most: long-term disability insurance.

According to the Social Security Administration, about 1 in 4 of today's workers will become disabled before they reach retirement age. If you can't work, your income stops — but your bills don't.

Many employers offer short-term disability, but long-term disability is the critical one. It replaces 60-70% of your income if you're unable to work for an extended period.

If your employer doesn't offer it, an individual policy usually runs about 1-3% of your annual income. For most people that's a small price to protect their single biggest asset: the ability to earn.