In the event of an accident, injury or illness that prevents you from working, disability insurance provides you with a percentage of your income. But not all disability insurance policies are the same. In fact, almost all of them will make up different percentages of your income (usually between 50 and 70 percent), along with different elimination periods and benefit periods. Elimination periods refer to how long you must wait before your benefits take effect. Benefit periods refer to the duration of payment of benefits, which depends on your disability and the policy you purchase.

Most plans have a start date that ranges from 30 days to 120 days after a disability occurs. Coverage generally focuses on illness or injury, and your plan cannot change without your permission until you are 65 years old.

In general, experts agree that disability insurance is a must for people, whether you have a group plan with an employer or you buy an individual policy for yourself. But with so many plans available, it’s important to understand the differences between each one. Here is a breakdown of the main types of disability insurance available:

• Group disability plans: This is the most common type of disability insurance plan and is generally offered through your employer. The group coverage level is typically the lowest and focuses on affordability, which is beneficial, but it does mean that benefits and payments can vary drastically. Keep in mind that group plans will generally not cover your income levels significantly, and this can be difficult at times when you are unable to work. They also typically have monthly or yearly limits on the dollar amount to be paid, and set maximum terms that may be shorter than you need. Group plans should always be read carefully, as you can often find that what you thought you would get is quite different from what you actually get.

• Individual disability plans: If you don’t have a group plan or don’t like your group plan, you can always go for an individual disability insurance policy. Without a pool, prices are often very different and will be tailored to your specific situation and needs, which can be both a benefit and a drawback. In general, plans are cheaper if you are young, healthy, and in a low-risk job compared to if you are older, in poor health, or work in a job that is considered high-risk for disability. Still, looking at your individual options means you can find a plan that suits your needs, wants, and budget more than a group plan. Doing your research could result in a better policy and position for you.

• Creditor disability insurance: Disability insurance is now commonly attached to debts, such as auto loans, leases, mortgages, and lines of credit. With Creditor Disability Insurance, your financial institution purchases a group policy, and you become part of the policy when you obtain a loan with that institution. These policies make loan payments on your behalf instead of sending you the money directly.

While group plans are less expensive overall, individual plans offer better coverage and can be tailored to your specific needs, including better terms and conditions compared to a group plan. Remember that premiums, terms and conditions are fixed until your 65th birthday, unless changes are made with your express permission. Individual plans are an excellent option for the self-employed, as well as professionals and executives, as they may have a “self-occupation” definition of disability. That means an insurance company cannot force you to work in another occupation based on your experience and training, an important characteristic for many professionals. Professionals should be wary of association disability plans, as the terms, conditions, and rates of these group policies can and often do change at any time.

If you need disability insurance, be sure to do your research on any policy you currently have or purchase.