5 Reasons to Buy Disability Insurance

Individuals buy disability insurance to protect against loss of earnings due to a job loss. There are two types of disability insurance, short-term and long-term. Short-term provides you with payments if you are out of work for an extended period due to illness or injury. Long-term disability is designed to pay out if you are permanently unable to return to work. 

#1 You Have Debt Obligations

If you have a mortgage, car payment or student debt obligation, what would happen if you lost your income source temporarily? The biggest concern for most people is a mortgage payment in this scenario. Disability insurance may be the only thing protecting you from delinquency, or even foreclosure, if you are unable to work due to illness or injury.

#2 You Have a Family

What would your family do if your income was no longer reliable? Head of household individuals are the most common purchasers of disability insurance for this reason. If you have more than one person relying on your salary, you have to think about a scenario where that salary was no longer applicable, and whether the members of your family could continue the same quality of life, in the case of your disability.

#3 You Do Not Have Emergency Funds

For many people, short-term disability is not a large threat. They could provide for themselves and their families for three months or longer in the face of a loss of income. If this describes your situation, short-term disability may not be necessary, and it may just be an added expense. However, if you do not have an emergency fund, you should consider short-term disability a necessity instead of a luxury. You could face immediate financial crisis if you were unable to perform your work for an extended period of time. 

#4 You Work in a Risky Profession

All individuals face the risk of becoming disabled; accidents happen, even in the safest of places. However, those people in risky professions face a much higher incidence of disability than those in safer professions. If you work in a manufacturing job, you may become disabled or ill due to stress and strain on your body and not just accidents. Do you know people at your workplace who have had to take time off? If so, your employer may even sponsor a short and long-term disability program. You can have access to this program at a lower rate, and failing to capitalize on that option is ill-advised.

#5 You Have a Predisposed Condition

You may know that your mother or father became disabled because of a stroke, arthritis or other condition that may have been genetically transferred to you. In this case, you have a greater risk of needing disability insurance. Your insurance may be slightly more costly as a result, but you should consider the alternative to carrying this insurance. If you know for sure that there is a relatively high chance you will become disabled and unable to work, buying insurance is the best method to secure your future regardless of what occurs with your health.

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