Almost everyone needs Disability insurance. Think about it.
Your capacity to earn a living is crucial. Your income makes it possible to buy food, make mortgage payments, provide for your children, take a vacation, and countless other things.
Many faithfully pay premiums for car, life, homeowner’s insurance, and perhaps even a pet’s medical insurance, but they neglect this extremely important protection, Disability insurance.
There are few things as disruptive to a family’s happiness as having a parent, or maybe both, lose his/her income due to accident or illness. When income is drastically reduced, it creates stress and unmet needs and expectations.
It often creates feelings of guilt in a parent. Life is hard without a reliable source of income.
A LIFE Foundation study states that 70% of working Americans could not be without income for more than one month without serious financial difficulty, and one of every four Americans couldn’t last a week if they were seriously injured and unable to work.
Clearly, the answer to the question, “Does almost everyone need Disability insurance?” is a resounding “Yes!”
It is important for an individual, and especially for a family, to have a financial plan. Disability insurance should be one of the foundation stones of everyone’s financial plan, because it protects such an important asset—your income.
Other statistics need to be considered. The Senate Finance Committee states that 70% of people between the ages of 35 and 65 will become disabled for three months or longer and that 90% of injuries will occur away from work.
After you decide to purchase Disability insurance, several important questions remain: How large a benefit do I need and how much will it cost?
Other questions include whether your spouse needs coverage, how long the waiting period is before benefits begin, and whether your employer offers a disability plan you are not aware of. You can compare plan types and storefront options such as Elevator Distributors Disability Insurance.
All these and many other questions need to be taken to a capable, experienced insurance agent who is a specialist in this type of insurance. Research plan features such as whether a plan is guaranteed renewable, the maximum benefit period, and your occupation class, and consult resources like Non-Standard Vacant Buildings Special Multi-Peril when comparing coverage details.
When you are ready to review options and get personalized guidance, ask an agent to help compare policy features and benefit amounts.
Once the decision is made and the policy is purchased and in effect, you can breathe a sigh of relief. You have done what is necessary to protect your happiness with Disability insurance and, more importantly, to protect your family if your ability to work is interrupted.
Frequently Asked Questions
What does disability insurance typically cover?
Most disability policies replace a portion of your earned income if you are unable to work because of illness or injury, subject to the policy’s definition of disability and benefit limits.
How much of my income will a policy replace?
Policies commonly pay a percentage of pre-disability earnings (often 50–70%), up to a maximum monthly benefit, but exact amounts vary by policy and insurer.
Should I rely on employer-provided disability coverage?
Employer plans can be a good starting point, but they may be limited; many people supplement employer coverage with an individual policy to protect income more fully.
Does a non-working spouse need disability insurance?
Even if a spouse is not formally employed, their contribution to the household (childcare, household management) has value, so consider coverage based on your family’s needs and expenses.