Disability insurance covers some or all of one’s salary in case one is able to work. Some states provide disability insurance as part of a set of programs such as unemployment insurance and workers compensation insurance. It works similar to an unemployment program but comes into play if you can’t work because you are ill or injured, not because there is no work.

As soon as you decide to look for a home loan, you will find yourself looking for a way to protect it. Do not be fooled into thinking that you have to get your mortgage insurance with the bank that is handling your home loan. (An exception is purchase mortgage insurance, the kind the lender requires you to take out to protect them when you have a low down payment.)