Disability insurance protects your paycheck.

When you think about making money, you probably focus on increasing your paycheck via raise negotiations, bonuses and new job opportunities. But while increasing earning potential is important, it’s equally vital to safeguard the income you’re currently making.

Wind up on the wrong end of a car windshield and all your raises and bonuses will be worth bubkes. What will suddenly become more important are the measures you put in place when all was well—the ones that make sure you and/or your family are provided for if you can’t do your job, either because of injury or (gulp) death. Fun times, no?

Most people looking to protect their income buy life insurance (link to Guide) first. But you’re much more likely to be down for the count for several months than you are to unexpectedly die early. That makes disability insurance your first priority on the protect-your-income front.

Disability insurance only works, however, if you’re unable to work because of a medical condition, whether it’s an injury or pregnancy or a mental illness. Short-term disability insurance can cover you for a few months to a few years. Long-term disability covers you if something lays you low for several years or permanently, though policies usually stop paying you money once you hit retirement age. Companies often offer their employees disability insurance options as a part of their benefits packages. Sometimes they even foot the bill.

Besides the short-term and long-term distinction (you get them separately, not together), there are a few other classifications you need to understand:

• Own occupation insurance – These policies pay you money if you can’t work at all in the job you used to have but you can do some other kind of work, related or not. Other policies won’t pay you unless you can’t work at all. Own occupation policies come with a steeper price tag.

• Non-cancellable insurance – This insurance works just like it sounds: the company can’t ever take it away from you, and the premium you pay is locked in for life. This will be expensive.

• Guaranteed renewable disability insurance – The disability insurance company can’t take this away from you either, but it can raise the price (as long as state regulators are cool with the hike). Some of the features may differ too, but the guaranteed renewable plans can cost about 20% less than the non-cancellable ones.