California-based financial planner Albert “Al” Manfre leads Heritage Financial Services, a boutique practice focused on estate planning, pension planning, and investment management. Al Manfre also advises on diverse insurance products for individuals and businesses.

Disability insurance provides a layer of financial protection should an individual become unable to work for an extended period of time. While disability insurance is often offered by employers on a voluntary basis, more than a quarter of employees will take an extended leave of absence due to an injury or illness.

Before purchasing a plan through an employer or on the open market, employees should become familiar with the types of disability insurance. Short-term insurance may cover up to 70 percent of an individual’s salary for a maximum of one year. Long-term insurance pays out a slightly lower percentage, but for an indefinite period of time.

Some policies only cover disabilities that prevent the insurance holder from doing any job. Others will pay out a benefit if the injury only prevents the individual from working at their specific occupation. Many factors can increase disability insurance premiums, from the age and gender of the policyholder to the nature of the work and the length of the payout period.