As we said before, most people should buy both short-term and long-term disability insurance.

However there are some situations where you’re safe skipping out on short-term disability insurance:

• If your employer provides it to you for free. (Many large employers do while most small companies don’t.)

• If you have a ton of savings, a trust fund or a big house with a small mortgage. You can self-insure instead and rely on your savings, trust fund or house (with a home equity loan) if you’re sick for a little while.

• If you’re in your 20’s (or your 30’s, for that matter) and your parents will take care of you if you’re temporarily incapacitated.

Buying long-term disability is a smart move for pretty much everyone (unless your generous employer pays for it.)

How much do you need? Look at your after-tax income (i.e. what’s on your paycheck), since that’s what you’re looking to replace. Then buy a disability insurance policy that will give you that amount, or whatever lesser amount makes you comfortable. You’ll pay taxes on the money you get if your employer paid for your disability insurance but not if you bought it on your own.

The price of your policy depends on which kind you select (non-cancellable, own occupation, etc.) and how much income the policy will replace. These days, short-term disability insurance tends to replace 80 to 90% of your income, while long-term insurance covers about 60% of your income.

So what will it cost you? It varies, of course, but in 2006, the average person paid $1,145 in annual premiums, according to LIMRA International, an association of insurance and other financial-services companies The average monthly payout that premium would have provided is about $2,350.