You may have heard about “disability insurance” before, but do you know what it means and how it works? Life insurance ensures your loved ones live well after your demise. Health insurance can help pay your medical bills in case of sickness. Car insurance enables you to repair or replace your car in a situation of an accident. But how do you protect your paycheck if you can’t earn a living due to injury or disability? Disability insurance!
Life and health insurance do not cover injuries and disabilities that might prevent you from working again. Hence, the need for a plan that can pay up to 60-80% of your income during disabilities or injuries. Like every insurance plan, you must pay a monthly premium to keep your disability insurance active. Different factors affect disability insurance cost, such as gender, type of job, and age. Here are three (3) reasons why you should get disability insurance.
Unlike life insurance plans that are only paid to your family and loved ones after your demise or health insurance plans that only cover your medical bills, disability insurance can help you solve your financial obligations in any shape they might come. Disability insurance allows you to enjoy the benefits of your insurance plans and will make up for the income you lost when you were unable to work. This is what other health insurance plans cannot do for you. You can use the payment from your disability insurance plan to offset mortgage loans, utilities and pay for any other personal needs that may arise during the cause of your injury or disability. A long-term disability insurance plan can even pay you and keep you financially afloat until retirement.
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Imagine the breadwinner of a family losing their income due to injury or disability. This automatically means that the family will have a hard time throughout the period that the injury lasts. Disability insurance plans prevent this. Your family is financially protected at this crucial time. Most people tend to prioritize life insurance plans to cater for their loved ones in case of unforeseen contingency. However, a disability insurance plan is equally essential as statistics show that about 70% of working Americans would experience financial hardship within a month of losing their income. Protect your family by getting a disability insurance plan.
Usually, group disability insurance plans may be put in place by your employer. However, these group coverages are rarely enough, and there is a cap to the benefit they offer. Group coverage works with your basic salary alone and may be canceled by your employer at any time. This means that it is important for you to get an adequate individual disability insurance plan that can also serve as a viable source of income during emergencies.
People often forget to plan for when they will no longer be physically able to work. Life can happen to anyone, as statistics show that one in four people is likely to get disabled before retirement. Disability insurance plans are not for people with dangerous jobs alone. Hence, it is vital to plan ahead in order to reduce the risks that are associated with the financial loss that occurs during injuries or disabilities.