Disability Insurance 101 FAQ
Disability insurance is an important protection if an injury or illness keeps you from earning an income. But disability insurance can be confusing or unfamiliar. 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 a covered illness or injury. Group disability insurance, like that offered through AIChE, can offer key advantages designed for the unique traits of a group.
Why should I consider disability insurance?
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.
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.
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?
Disability insurance may have an “own occupation” feature. That means you receive monthly payments if a covered disability prevents you from doing your job in physical therapy, not just a job of any type. The AIChE Group Disability Insurance offers this advantage.
Are disability insurance benefits taxable?
Monthly benefits paid through employer-sponsored disability insurance are likely to be taxable. In contrast, the IRS has stated that the benefits of group disability insurance policies, such as the one sponsored by AIChE, are free of income tax when you pay the premiums with your own after-tax dollars.3 Consult your tax advisor.
What is insurance portability?
Unlike many employer-provided disability policies, AIChE-sponsored coverage 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.
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.
As an AIChE member, you’re eligible to apply quickly and easily for AIChE‑sponsored Group Disability Insurance underwritten by New York Life Insurance Company. Benefits of up to $7,700 a month4 are available, paid on top of any employer-provided disability coverage you might already have.
(No need to provide an email address or phone number to see your cost.)
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/disabilityfacts/facts.html (viewed 9/10/25)
2 Source: Insurance Information Institute, https://www.iii.org/article/will-my-employer-provide-disability-coverage, as viewed 9/25/25.
3 Source:IRS, https://www.irs.gov/faqs/interest-dividends-other-types-of-income/life-insurance-disability-insurance-proceeds/life-insurance-disability-insurance-proceeds-1, as viewed 10/6/25
4 This coverage, when added to any current disability coverage you have, may not total to more than 60% of your average pre tax monthly income (see coverage overview).
5 Including information on features, costs, eligibility, renewability, limitations and exclusions.
8383682.1
Additional Articles Below
Disability Insurance 101 FAQ
Disability insurance is an important protection if an injury or illness keeps you from earning an income. But disability insurance can be confusing or unfamiliar. 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 a covered illness or injury. Group disability insurance, like that offered through AIChE, can offer key advantages designed for the unique traits of a group.
Why should I consider disability insurance?
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.
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.
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?
Disability insurance may have an “own occupation” feature. That means you receive monthly payments if a covered disability prevents you from doing your job in physical therapy, not just a job of any type. The AIChE Group Disability Insurance offers this advantage.
Are disability insurance benefits taxable?
Monthly benefits paid through employer-sponsored disability insurance are likely to be taxable. In contrast, the IRS has stated that the benefits of group disability insurance policies, such as the one sponsored by AIChE, are free of income tax when you pay the premiums with your own after-tax dollars.3 Consult your tax advisor.
What is insurance portability?
Unlike many employer-provided disability policies, AIChE-sponsored coverage 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.
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.
As an AIChE member, you’re eligible to apply quickly and easily for AIChE‑sponsored Group Disability Insurance underwritten by New York Life Insurance Company. Benefits of up to $7,700 a month4 are available, paid on top of any employer-provided disability coverage you might already have.
(No need to provide an email address or phone number to see your cost.)
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/disabilityfacts/facts.html (viewed 9/10/25)
2 Source: Insurance Information Institute, https://www.iii.org/article/will-my-employer-provide-disability-coverage, as viewed 9/25/25.
3 Source:IRS, https://www.irs.gov/faqs/interest-dividends-other-types-of-income/life-insurance-disability-insurance-proceeds/life-insurance-disability-insurance-proceeds-1, as viewed 10/6/25
4 This coverage, when added to any current disability coverage you have, may not total to more than 60% of your average pre tax monthly income (see coverage overview).
5 Including information on features, costs, eligibility, renewability, limitations and exclusions.
8383682.1
Additional Articles Below
Disability Insurance 101 FAQ
Disability insurance is an important protection if an injury or illness keeps you from earning an income. But disability insurance can be confusing or unfamiliar. 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 a covered illness or injury. Group disability insurance, like that offered through AIChE, can offer key advantages designed for the unique traits of a group.
Why should I consider disability insurance?
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.
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.
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?
Disability insurance may have an “own occupation” feature. That means you receive monthly payments if a covered disability prevents you from doing your job in physical therapy, not just a job of any type. The AIChE Group Disability Insurance offers this advantage.
Are disability insurance benefits taxable?
Monthly benefits paid through employer-sponsored disability insurance are likely to be taxable. In contrast, the IRS has stated that the benefits of group disability insurance policies, such as the one sponsored by AIChE, are free of income tax when you pay the premiums with your own after-tax dollars.3 Consult your tax advisor.
What is insurance portability?
Unlike many employer-provided disability policies, AIChE-sponsored coverage 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.
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.
As an AIChE member, you’re eligible to apply quickly and easily for AIChE‑sponsored Group Disability Insurance underwritten by New York Life Insurance Company. Benefits of up to $7,700 a month4 are available, paid on top of any employer-provided disability coverage you might already have.
(No need to provide an email address or phone number to see your cost.)
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/disabilityfacts/facts.html (viewed 9/10/25)
2 Source: Insurance Information Institute, https://www.iii.org/article/will-my-employer-provide-disability-coverage, as viewed 9/25/25.
3 Source:IRS, https://www.irs.gov/faqs/interest-dividends-other-types-of-income/life-insurance-disability-insurance-proceeds/life-insurance-disability-insurance-proceeds-1, as viewed 10/6/25
4 This coverage, when added to any current disability coverage you have, may not total to more than 60% of your average pre tax monthly income (see coverage overview).
5 Including information on features, costs, eligibility, renewability, limitations and exclusions.
8383682.1
