When is the Right Time for Disability Insurance?

Disability insurance, or disability income insurance, protects your income in the event that you become disabled and are not able to work. Typical benefits paid from disability policies include paid sick leave, short term disability payments and long term disability payments. Disability insurance policies can be available through an employer or you can purchase them on your own.

 Determining If You Need Disability Insurance

If you are not employed, don't earn an income and don't have others that depend on you for support, then you probably don't really need disability insurance coverage. However, if you have a job and depend on an income from employment to support yourself or others, then disability insurance is something you should seriously consider.

Disability insurance world pay benefits in the event that you become injured or disabled and are not able to work for a prolonged period of time. Because most people depend on income from their job to earn a living and pay bills in order to survive, disability insurance is beneficial to almost anyone that has a job. Simply put, if you have a job - consider disability insurance.

Deciding When You Need Disability Insurance

Deciding when you need to purchase disability insurance is something that every person will need to answer for themselves. Generally speaking, if you reach a point in your life where you realize that the loss of your income will bring about a significant hardship in your life, it is time to consider the purchase of disability insurance coverage.

If you answer yes to any of these questions, you need disability insurance:

  • Ask yourself, if I lose my job: will I go into debt?
  • Will I lose my car or home?
  • Will I no longer be able to support myself or my family?

Also, if you have others who depend upon your income for support, such as a spouse or children, disability insurance is always a good idea. Disability insurance can help to ensure that your family has the means to live in a reasonable manner while you're not able to work.

Disability Insurance Considerations for the Young

These days, more and more young people are inquiring about disability insurance. This is a very good thing because it is never too early to begin preparing for your financial future. Even though young people under the age of 30 usually don't earn as high an income as older people do, this does not mean that the loss of the income will impact them any less.

Disability insurance is one of the cheapest types of insurance coverage that you can purchase, comparatively speaking that is, and a young person can add future increase options to a disability insurance plans that will provide coverage for higher income limits as the young policyholder grows older. In fact, choosing a non-cancelable, guaranteed renewable disability insurance policy when you're young is one of the smartest financial decisions a young person can make.

blog comments powered by Disqus