One in four employees will experience long-term disability at some point, and it can have devastating consequences for a family’s finances.

There are three types of disability income insurance: employer-provided insurance, private policies and government plans such as Social Security disability and state disability plans.

There are also long-term disability policies and short-term disability policies. Short-term disability policies usually cover the first few weeks or months that the policyholder can’t work but expire after a specified time. Short-term policies are usually only available through employers.

Long-term policies provide coverage after a specified period of disability but lasts much longer than short-term policies. Some employers offer long-term policies, but they also can be purchased individually. Long-term disability policies can last years and can be tailored to meet your specific needs. The ideal long-term policy will protect you until you’re 67 years old.

Long-term disability insurance rates are based on demographics such as your gender, age and occupation. The rate also is determined by the percentage of income the policyholder wants to cover. Generally, these policies cost from 1 percent to 3 percent of the policyholder’s salary. Policies purchased through a group plan, such as an employer’s plan, can be less expensive.