Disability Insurance 101 FAQ
Disability insurance is a critical protection if an injury or illness keeps you from earning an income. But many people find disability insurance confusing or haven’t taken the time to learn more. Here are some fundamental questions and answers to help you get started.
What is disability insurance?
Disability insurance replaces part of your income for a specific period if you’re unable to work because of an illness or injury. Group disability insurance, like that offered for members of the American Physical Therapy Association, can offer key advantages designed for the unique traits of your group.
Why should I consider disability insurance?
People often think disability insurance only covers serious injuries and illnesses. However, many common injuries and illnesses can result in you being unable to work. The fact is, over 25% of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before retirement.1
Should I still consider disability insurance if I already have coverage from my employer?
Yes. Many employer-paid policies replace only a fraction of your working income.2 Increasing your total coverage can help you avoid having to deplete savings and investments intended for other purposes, including retirement.
What types of disabilities are covered?
While people generally think of disabilities being caused by accidents, some disabilities are caused by illness. Disability insurance typically covers a variety of illnesses, as well as serious accidents and injuries that prevent you from working.
How much disability insurance can I apply for?
There is a maximum amount of disability insurance you can apply for. The benefits from APTA Group Disability Insurance, combined with benefits from all other sources, may not exceed 66⅔% of your basic monthly pre‑tax income.
How much does disability insurance cost?
The cost of disability insurance depends on the amount you apply for, how long it will last, the length of the waiting period, as well as your age, health, and occupational factors. As an APTA member, see your cost and coverage options here.3
What is a waiting or elimination period?
A waiting period is the length of time you have to wait after the onset of a covered disability before you receive benefits. The longer the waiting period, the less expensive the insurance.
What does “own occupation” coverage mean?
“Own occupation” coverage protects you if a covered disability keeps you from working in your field as a physical therapist, not just in any job.
Are disability insurance benefits taxable?
Monthly benefits paid through employer-sponsored disability insurance are likely to be taxable, reducing the true amount of protection the coverage provides. In contrast, the IRS has stated that the benefits of group disability insurance policies, such as the one tailored for APTA members, are free of income tax when you pay the premiums with your own after-tax dollars. Consult your tax advisor.
What is insurance portability?
Unlike many employer-provided policies, HPSO-sponsored coverage for APTA members is yours to keep without interruption, even if you change jobs or become self-employed, provided premiums are paid when due and you remain actively at work. These policies can add an extra layer of protection that will move with you throughout your career.
How do I apply for disability insurance?
You can easily apply online or download a printable application that you complete and return by mail.
Could my disability insurance application be denied?
Yes. Applications are reviewed for insurability based on age, health, and other information you provide or give permission to obtain.
Do I need a medical exam to apply for disability insurance?
Not always. You may be requested to answer a few health questions by phone or have a medical exam. The exam is at the insurance company’s expense and scheduled at your convenience.
As an APTA member, you’re eligible to apply for HPSO‑sponsored Group Disability Insurance underwritten by New York Life Insurance Company. Benefits of up to $10,000 a month4 are available, paid on top of any employer-provided disability coverage you might already have. Plus, APTA Members can now save 50% in the form of a premium credit!
NEW – Save 50% with a premium credit for members from New York Life Insurance Company.5
(No need to provide an email address or phone number to see your cost.)
Just answer 2 short questions to see your personal cost quote in seconds. If you like what you see, apply online at your convenience.
Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 on Group Policy Form GMR.
1 Source: Social Security Administration, https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf (viewed 2/25/25)
2 Source: Insurance Information Institute, https://www.iii.org/article/will-my-employer-provide-disability-coverage, as viewed 2/25/25.
3 Including information on features, costs, eligibility, renewability, limitations and exclusions.
4 Benefits under this policy combined with benefits from all other sources may not exceed 66 2/3% of your basic monthly pre tax income.
5 Premium credits are not guaranteed. The current credit of 50% is in effect through 6/30/26 and will be reflected on your premium statements.
6 Including information on features, costs, eligibility, renewability, limitations and exclusions.
7694964.1
Disability Insurance 101 FAQ
Disability insurance is a critical protection if an injury or illness keeps you from earning an income. But many people find disability insurance confusing or haven’t taken the time to learn more. Here are some fundamental questions and answers to help you get started.
What is disability insurance?
Disability insurance replaces part of your income for a specific period if you’re unable to work because of an illness or injury. Group disability insurance, like that offered for members of the American Physical Therapy Association, can offer key advantages designed for the unique traits of your group.
Why should I consider disability insurance?
People often think disability insurance only covers serious injuries and illnesses. However, many common injuries and illnesses can result in you being unable to work. The fact is, over 25% of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before retirement.1
Should I still consider disability insurance if I already have coverage from my employer?
Yes. Many employer-paid policies replace only a fraction of your working income.2 Increasing your total coverage can help you avoid having to deplete savings and investments intended for other purposes, including retirement.
What types of disabilities are covered?
While people generally think of disabilities being caused by accidents, some disabilities are caused by illness. Disability insurance typically covers a variety of illnesses, as well as serious accidents and injuries that prevent you from working.
How much disability insurance can I apply for?
There is a maximum amount of disability insurance you can apply for. The benefits from APTA Group Disability Insurance, combined with benefits from all other sources, may not exceed 66⅔% of your basic monthly pre‑tax income.
How much does disability insurance cost?
The cost of disability insurance depends on the amount you apply for, how long it will last, the length of the waiting period, as well as your age, health, and occupational factors. As an APTA member, see your cost and coverage options here.3
What is a waiting or elimination period?
A waiting period is the length of time you have to wait after the onset of a covered disability before you receive benefits. The longer the waiting period, the less expensive the insurance.
What does “own occupation” coverage mean?
“Own occupation” coverage protects you if a covered disability keeps you from working in your field as a physical therapist, not just in any job.
Are disability insurance benefits taxable?
Monthly benefits paid through employer-sponsored disability insurance are likely to be taxable, reducing the true amount of protection the coverage provides. In contrast, the IRS has stated that the benefits of group disability insurance policies, such as the one tailored for APTA members, are free of income tax when you pay the premiums with your own after-tax dollars. Consult your tax advisor.
What is insurance portability?
Unlike many employer-provided policies, HPSO-sponsored coverage for APTA members is yours to keep without interruption, even if you change jobs or become self-employed, provided premiums are paid when due and you remain actively at work. These policies can add an extra layer of protection that will move with you throughout your career.
How do I apply for disability insurance?
You can easily apply online or download a printable application that you complete and return by mail.
Could my disability insurance application be denied?
Yes. Applications are reviewed for insurability based on age, health, and other information you provide or give permission to obtain.
Do I need a medical exam to apply for disability insurance?
Not always. You may be requested to answer a few health questions by phone or have a medical exam. The exam is at the insurance company’s expense and scheduled at your convenience.
As an APTA member, you’re eligible to apply for HPSO‑sponsored Group Disability Insurance underwritten by New York Life Insurance Company. Benefits of up to $10,000 a month4 are available, paid on top of any employer-provided disability coverage you might already have. Plus, APTA Members can now save 50% in the form of a premium credit!
NEW – Save 50% with a premium credit for members from New York Life Insurance Company.5
(No need to provide an email address or phone number to see your cost.)
Just answer 2 short questions to see your personal cost quote in seconds. If you like what you see, apply online at your convenience.
Underwritten by New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010 on Group Policy Form GMR.
1 Source: Social Security Administration, https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf (viewed 2/25/25)
2 Source: Insurance Information Institute, https://www.iii.org/article/will-my-employer-provide-disability-coverage, as viewed 2/25/25.
3 Including information on features, costs, eligibility, renewability, limitations and exclusions.
4 Benefits under this policy combined with benefits from all other sources may not exceed 66 2/3% of your basic monthly pre tax income.
5 Premium credits are not guaranteed. The current credit of 50% is in effect through 6/30/26 and will be reflected on your premium statements.
6 Including information on features, costs, eligibility, renewability, limitations and exclusions.
7694964.1
