Do I Need Disability Insurance?

A lot of young people don’t think about disability insurance, especially if they don’t have a dangerous job. Actually, disability insurance isn’t just for the workplace. Disability insurance can help to protect you if you become unable to work after an accident or incident that causes a disability. Here are the main reasons to consider this kind of insurance.

Image Via Charles Deluvio
Image Via Charles Deluvio
You’re The Breadwinner

If you are the main earner in your household, then you need to have disability insurance to protect you and your family against income loss, so you can continue to support the ones who rely on you.

If you financially support a partner, children, elderly parents, or anybody else, having some disability insurance will make sure that they are looked after if you’re unable to work after an injury or illness. When you apply for an insurance policy, you can choose how much want to receive each month as a benefit and how long you want it to last. Your options will depend on whether you are partially or totally disabled. Partial disabilities may include disabilities caused by diabetes, cancer, or heart attacks.

You’re Paying Off Debt

Lots of young people are struggling with debt, often caused by student loans or credit cards. If you have big monthly payments, suddenly losing your income would have an impact on your ability to make these payments on time or in full.

Make sure your insurance coverage would allow you to pay your debt payments every month so you don’t fall behind even you if are temporarily laid off due to illness or injury.

Your Employer Doesn’t Offer Enough Coverage

Most employees offer short-term disability insurance, but this is usually only able to replace a small part of your income for a few months. You’ll also be taxed on those payments. These policies also rely on you being employed too. If you lose your job after injury or illness, you lose out on those payments.

This is why it’s sensible to buy additional long-term disability insurance or the best coverage. Long-term disability insurance would then be able to kick in when your short-term coverage or your emergency fund runs out, meaning you won’t find yourself without any money coming in.

You Work For Yourself

If you’re self-employed, disability insurance is essential. An insurance benefit will help make sure you maintain consistent income and help to cover your ongoing business expenses.

If you’re self-employed and looking for disability insurance, you will need to provide tax returns from the past two years to prove your income. You might also need to be willing to pay a higher premium each month to shorten the elimination period or how long you have to wait to receive any payments. This is worth it, as you won’t have short-term coverage from an employer to get you through.

Disability insurance is a very smart thing to have, which all responsible people should have to protect them from losing their income after illness or injury.


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