Go Insurance is a type of coverage that pays out when you cannot work because of illness or injury

Go insurance — sometimes called income protection insurance or disability insurance — replaces part of your paycheck if you become unable to work due to sickness or injury. The insurance company sends you regular payments while you recover, so you can cover rent, food, and bills without draining savings or going into debt.

The amount you receive is usually a percentage of your normal income, often between 50 and 70 percent. How long the payments last depends on the specific policy you buy — some cover you for a few months, others for years or until retirement age.

Go insurance is different from workers' compensation (which covers injuries that happen at work) and from unemployment insurance (which covers job loss). It is designed for people who still have a job but cannot perform it because of their health.

Key Takeaways

  • Go insurance replaces a portion of your income if illness or injury prevents you from working, typically 50 to 70 percent of your regular pay.
  • You choose the waiting period (how long after you stop working before payments begin) and the benefit period (how long payments continue), which affect the cost of the policy.
  • Some employers offer go insurance as part of an employee benefits package; others you purchase on your own through an insurance company.
  • Premiums vary based on your age, health, occupation, and how much income you want covered, so comparing quotes from multiple insurers is worth the time.
  • The income you receive from go insurance is usually taxable, though some employer-sponsored policies may have different tax treatment.

How the waiting period and benefit period work

When you buy a go insurance policy, you set two time frames. The waiting period (also called the elimination period) is how many days or weeks you must be unable to work before the insurance company starts sending you money. Common waiting periods are 14 days, 30 days, 60 days, or 90 days. The longer you choose to wait, the lower your monthly premium will be, because the insurance company is taking on less risk.

The benefit period is how long the insurance company will pay you once the waiting period ends. You might choose to be covered for two years, five years, until age 65, or for your entire working life. Again, longer coverage costs more per month. Many people choose a benefit period that matches when they expect to retire, or they pick a shorter period if they are younger and expect to return to work within a few years.

For example, if you choose a 30-day waiting period and a two-year benefit period, you would not receive any payment for the first 30 days you cannot work. After day 30, the insurance company would send you monthly payments for up to two years. If you recover and return to work before two years have passed, the payments stop.

Employer-sponsored go insurance versus individual policies

Some employers offer go insurance (or short-term and long-term disability insurance) as part of their benefits package. If your employer offers it, you may pay part or all of the premium through payroll deduction, and your employer may cover part of the cost. Employer plans are often cheaper than buying on your own because the insurance company is covering a group of people rather than just you.

If your employer does not offer go insurance, or if you are self-employed or a freelancer, you can buy an individual policy directly from an insurance company. You pay the full premium yourself, usually monthly. Individual policies tend to cost more than employer plans, but they stay with you if you change jobs.

Some people have both — an employer plan that covers part of their income, plus an individual policy that covers the rest. This combination is called supplemental disability insurance.

What affects the cost of your premium

Insurance companies look at several factors when deciding how much to charge you for go insurance. Your age matters: younger people pay less because they are statistically less likely to file a claim. Your health history and current health status also affect the price — if you have a chronic condition or a history of mental health treatment, your premium may be higher. Some insurers require a medical exam before issuing a policy.

Your occupation plays a role too. People in physically demanding jobs or jobs with higher injury rates pay more than people in office work. An insurance company considers a construction worker a higher risk than an accountant, so the construction worker's premium is higher.

Finally, the amount of income you want covered and the waiting and benefit periods you choose directly affect cost. A policy that covers 70 percent of your income with a 14-day waiting period and a five-year benefit period will cost significantly more than one covering 50 percent with a 90-day waiting period and a two-year benefit period.

How to compare go insurance policies

Start by deciding what you actually need. How much of your monthly expenses could you cover from savings if you could not work for a month? Three months? That answer helps you choose a waiting period. Then ask yourself: how long could you afford to live on reduced income? That answer helps you choose a benefit period.

Once you know what you want, get quotes from at least three insurance companies. Many insurers let you get a quote online in minutes by answering questions about your age, health, occupation, and income. Compare not just the monthly premium, but also what the policy actually covers — some policies exclude certain conditions, or have limits on mental health claims, or do not cover pregnancy-related disability.

Read the definition of "disability" carefully. Some policies require you to be unable to do any job; others only require you to be unable to do your specific job. The second definition is more generous and usually costs more, but it matters if you could work in a different field while recovering.

Tax treatment of go insurance payments

If you pay the entire premium yourself with after-tax money, the payments you receive from go insurance are usually not taxable income. You already paid tax on the money that bought the policy, so the insurance company does not tax you again when it pays out.

If your employer pays part or all of the premium, the payments you receive are usually taxable as income. This is because your employer's contribution was a tax-free benefit to you at the time, so the payout is treated as income. Your insurance company will send you a 1099 form at tax time showing how much you received.

Some employer plans split the premium between you and your employer, which means part of your benefit is taxable and part is not. Ask your employer or your insurance company to clarify the tax treatment of your specific policy before you file your taxes.

What go insurance does not cover

Go insurance has limits. Most policies do not cover disability caused by alcohol or drug use, or by injuries from illegal activities. Some policies exclude or limit coverage for mental health conditions, pregnancy, or back injuries — though this varies by insurer and state.

Pre-existing conditions may not be covered, depending on when you bought the policy and how long you have had the condition. If you had a back problem before you bought go insurance, the policy might not pay out if you become disabled because of that same back problem later.

Go insurance also does not cover temporary absences for planned surgery or childbirth unless you become unable to return to work after the recovery period. It is designed for unexpected illness or injury that keeps you out of work longer than you anticipated.

Frequently Asked Questions

Can I get go insurance if I have a pre-existing health condition?

Yes, but the policy may exclude or limit coverage for that specific condition. Some insurers will not cover claims related to a condition you had before you bought the policy, or they may require you to have been symptom-free for a certain period. Always disclose your full health history when explore, and ask the insurer in writing what conditions are excluded.

What happens to my go insurance if I change jobs?

If you have an employer-sponsored policy, it usually ends when you leave the job. Some policies allow you to convert to an individual policy without a medical exam, though the premium will be higher. If you have an individual policy you bought on your own, it stays with you regardless of job changes.

How long does it take to receive payments after I file a claim?

After you submit a claim, the insurance company typically takes two to four weeks to review it and approve or deny it. Once approved, payments usually begin after your waiting period ends. The exact timeline depends on how quickly you submit medical documentation and how busy the insurance company is.

Can I have go insurance and still collect unemployment benefits?

No. Unemployment insurance is for people who are able and willing to work but cannot find a job. Go insurance is for people who cannot work due to illness or injury. You cannot collect both at the same time because they cover different situations.

What is the difference between short-term and long-term disability insurance?

Short-term disability typically covers you for a few weeks to a few months, while long-term disability covers you for years or until retirement. Many employers offer both as separate policies. Short-term usually has a shorter waiting period and replaces a higher percentage of your income; long-term has a longer waiting period but covers you for much longer.