State disability insurance (SDI) and private disability insurance are two different types of insurance that provide income replacement in the event of a disability.

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State Disability Insurance is a program administered by the state government. It provides short-term benefits to eligible employees who are unable to work due to a non-work-related illness or injury. The benefits provided are generally limited to a percentage of the worker's wages and have a cap on the amount of benefits that can be paid.

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Private Disability Insurance Usually Covers MORE!

On the other hand, Private Disability Insurance is a policy purchased by an individual. It can provide both short-term and long-term benefits in the event of a disability caused by an illness or injury. The benefit amounts and duration of coverage depend on the terms of the policy, which can vary widely between providers. Private disability insurance is often more flexible than SDI in terms of coverage options and benefits.

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Private individual disability insurance is truly a basic concept. It is an insurance product designed to replace anywhere from 45-60% of your gross income on a tax-free basis should a sickness or illness prevent you from earning an income in your occupation. Every disability insurance policy from every insurance company is very different; this is not a product to simply shop for the most competitive rate. To buy the cheapest disability insurance policy on the market is to throw money away. The odds of getting paid a monthly benefit under a cheap contract may be significantly lower than receiving benefits from a quality contract.