We insure our car, our home, our teeth, and even our very lives but there is one type of insurance that many people fail to purchase- disability insurance.
Disability insurance isn’t on the list of most purchased insurance and it’s one that can save you from financial hardships in times when money would most certainly be tight.
Disability insurance is a type of insurance that will provide you with a monthly income when you lose the ability to work due to becoming disabled.
You might consider yourself among those who don’t need disability insurance, but if you depend on your income to cover bills and other living expenses, then you should get disability insurance.
Most people consider disability insurance a waste of money because they are healthy and they don’t work at a dangerous job.
Are you starting to reconsider? Here are five reasons why you should:
With COVID 19 spreading throughout the country, this is more true now than ever. Would you be able to survive months without work while you are down and out?
If you had a disability insurance plan and did contract COVID or any other illness that would make it impossible to work, you’d still be getting a paycheck to help you make ends meet until you are back on your feet.
Just because you don’t work a high-risk job doesn’t mean you can’t get seriously injured.
Disability insurance covers you no matter how you got the injury.
You could be walking down the street and slip on a banana peel, resulting in a spinal injury. Or you could more likely get into a car accident that rendered you unable to work.
Either way, your disability insurance can help you survive financially until you are healed.
If you buy a disability policy but are also eligible for social security disability, you didn’t waste your money. Instead, you’ll get more than just social security disability.
You can also get short-term disability which kicks in within weeks and will cover you for the first three to six months, possibly a year.
Long term disability will kick in after your short term runs out and will cover you if your disability is so extensive that you won’t be able to go back to work in more than a year.
You can choose how long your long term disability will cover you depending on how much you are willing to pay. The longer your benefit period the most expensive your policy will be.
There are still many families out there that have one spouse that works and the other is responsible for caring for the home. If the spouse that brings home the bacon is out of commission, the whole house will be broke.
Disability insurance can save you from such a catastrophic event. It could save your home from foreclosure, your car from repossession, and keep your credit in good standing.
Your disability may not have made you completely unable to work. You can no longer handle the workload or work at a job that is as lucrative as the one you had before your injury, however.
This can make you take a big dip in the amount of money you earn each month. You might not be able to afford the things that you could easily maintain before your injury.
This is where disability insurance can save the day once again. A good disability policy should come with a solid “own occupation” clause.
This means that you will get disability benefits even if you can still work, but not at your former position.
Take, for example, a surgeon who had a broken hand. It would be impossible to continue to perform surgeries, but he could possibly be a salesman.
Would his salary be as high as a salesman that it was as a surgeon? Unless he was an amazing salesman of some high-end product, the chances are very slim.
Disability insurance can help cover that gap in pay until his hand is healed and he can once again enter the surgery room with confidence.
Disability insurance shouldn’t be waved off into the category of unnecessary or not for me.
Bad things can happen to those who are least expecting it. Don’t wait for this to happen to you. Protect your income with disability insurance.