WHY YOU NEED DISABILITY INSURANCE

By in Insurance, Money Management | 5 comments

Protect Your Income with Disability Insurance

“Some people may be surprised to learn that disability insurance is every bit as important as life insurance. Many times it can be even more important than life insurance.” Streetdirectory dot com

In How to Get Rich Without Winning the Lottery,  I touch on insurance basics. This is the one piece of the finance puzzle that you must buy and hope that you never need! We all know about health insurance which helps pay for those gigantic hospital and doctor bills. Then there’s life insurance, if you have someone depending upon your income and you die, this coverage pays your dependents. But what about income protection if you become disabled and cannot work for a period of time? This disability insurance is frequently overlooked, yet you are far more likely to become disabled during your life than you might expect.

Live Healthy- Reduce Disability

Live Healthy- Reduce Disability

The statistics reported at disabilities can happen dot org are startling;

  • “Over 1 in 4 20 year olds will become disabled for some period of time before they retire.
  • About 12 percent of the population or 36 million Americans are classified as disabled.
  • A sample of factors that increase the risk of disability: Excess body weight, tobacco use, high risk activities or behaviors, chronic conditions such as; diabetes, high blood pressure, back pain, anxiety or depression, frequent alcohol consumption or substance abuse.”

How to Protect Yourself from Financial Distress

Just like homeowners, auto, life, and health insurance, you need income protection disability insurance. Many are lucky because their employers offer this type of coverage. Regardless of whether you purchase this coverage on your own or through your employer, the longer you can delay receiving benefits, the smaller your premium will be.

One of the best ways to both keep your disability premiums lower and decrease the likelihood that you will become disabled is to take care of your health. It’s not much of a surprise that poor health habits, overuse of substances, lack of exercise, and improper diet can increase your risk of becoming disabled.

If you are working, you need disability insurance. Check with your employer first, next investigate your existing insurers to determine whether they offer disability insurance as well. Some times bundling insurance with the same carrier lowers premiums.

Treat Yourself and Your Finances Well

Building wealth includes protecting what you earn. Your future earnings will amount to more than a million dollars. Protect that future earning power with disability insurance.

1. Stay healthy or get healthy.

2. Contact your human resources department for information about low cost disability insurance.

3. Contact your auto, home, and life insurers for affordable disability coverage.

4. Do not put this off, you’re more likely to become disabled while working than die.

5. Put it on your “to do” list or it will not get done!

Do you have disability/income protection insurance? If not, why not?

image credit; inspired living dot tv_google images

    5 Comments

  1. Good idea, although I take a different approach. I bank my sick time and have over 125 days accumulated. I very rarely get sick and I have enough sick time for those short term disabilities. Unfortunately, at my age I do not have an alternative.

    krantcents

    April 8, 2013

  2. I know there are some serious disabled people in the world and that has got to be the worst feeling in the world. To not be able to work or do certain things is depressing. However I would love to know what percentage of that might be gaming the system. I met a woman who told me she stopped working because she didn’t get certain benefits from the government. My jaw went straight to the floor. However, on further inspection I realized that it made no sense for her to work. She was busting her butt barely making ends meet. If she stopped working she could benefit and work on the side plus enjoy life. Anyway, I can go on and on but you get my point.

    Jai Catalano

    April 8, 2013

  3. @Krantc-That is a really interesting strategy. Unfortunately, some employers do not let you roll over sick days from year to year.
    @Jai-The issue you bring up may have something to do with how the government structures disability pay. It is a catch 22 as sometimes folks are paid more not to work. But in general, for those in the middle class, it’s a good option to check out disability insurance.

    Barb

    April 8, 2013

  4. A couple of years ago I was paying for disability insurance, but due to a lapse because I didn’t earn a pay check in the summer months, the company kept charging me and then saying I didn’t have coverage. Needless to say, I discontinued the insurance and asked for refund of the months they deducted but I wasn’t covered. Now, I’m banking sick days, so hopefully that will cover any illness I might get in the far-off future.

    Little House

    April 9, 2013

  5. @Little House, Obviously, everyone has their own particular circumstances. It sounds like you are making a smart and reasoned decision for you circumstances.

    Barb

    April 9, 2013

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