Do I Need Disability Insurance?

Did you ever think what would happen if the only bread winner in the family got hurt and couldn’t work for an extended period of time. Maybe this injury lasted 1 or 2 years, how would your family survive? If your like most families, you probably couldn’t survive 1 to 2 weeks. Being prepared for a disaster like this is the most important way you can take care of your family.

The Social Security Administration says among the 20 year olds of today, more than one quarter will experience a disability before they turn 67 years old. They should know because they pay billions every year out to disabled workers.

Whatever our career may be we all have some vulnerability to sustaining an injury that would make going to work impossible. If you work for a large company and have health care you may not know there may be some component to it for long term disability. This means on 4 out of every 10 Americans has disability coverage.

Having disability coverage is not a perfect solution to being injured on the job. Even if you do have coverage it may 2 months to start paying benefits. Also the amount you receive will only be around 60% of the income you received at work. This is not a complete replacement for loss of income but it is better than nothing.

If you work at a large company you may be able to secure a group disability policy. You will find that buying this insurance is typically less than going on the open market and purchasing a policy for an individual.

The most important options to consider when you’re choosing the right disability insurance policy is the length of time the benefits last (which are usually until the age of 65 or later if that is what is wanted), and the elimination period (which refers to the length of time that passes between the disability first occurring and the receipt of the first payment).

Disability insurance is a necessary part of your entire financial plan. Insurance covers the loss whether it is property or loss of income. Sometimes loss of income can be worse than loss of property. Loss income can devastate a family and its future.