We know why auto insurance, health insurance, and homeowners or renters insurance is necessary, but what about disability insurance? People who are insured by their employers may not put much, if any, thought into how or why they should get disability insurance. The truth is, because few people intend to become disabled, they never plan for it. This can have huge consequences, even if you have employer-provided insurance.
What is Disability Insurance?
Disability insurance protects individuals who become disabled and lose their ability to work. This insurance helps replace lost income. There are two types of disability insurance policies: short-term and long-term. Short-term disability has a maximum coverage of two years. A long-term policy has benefits that can last until age 65 – or the rest of your life.
Why Buy Disability Insurance?
Statistically, people are more likely to become disabled than they are to get into a serious auto accident or lose their possessions in a house fire. If you become disabled and are unable to work for months or years at a time, wouldn’t you want to have an insurance policy to help cover your loss of income? There is more financial burden for a family with a disabled family member than one who died prematurely. Disability insurance is there to help families recover and work through that difficult time period.
Do I Need More?
Some employers offer disability insurance, but it may not be anywhere near sufficient. Younger employees may be particularly hardest hit in the event of a disability because they have more debt in terms of rent, student loans, and car payments. While employer based disability insurance may pay a portion of lost income, it may not be enough to pay monthly bills or help staunch debt.
Why Is It So Expensive?
Some employers offer disability insurance and some do not. This insurance can be costly compared to others, but in the event of disability, the cost to protect yourself pays off. When living paycheck to paycheck, disability insurance may seem like a burden, but it is worth it when your paychecks stop because you can’t work. With short-term and long-term options, insurance seekers who are looking to protect their paychecks should sit down, figure out their expenses, and find which type of policy fits best. Without coverage, unprotected citizens may be gambling their paychecks away.
For more information about the types of disability insurance policies and why you should protect yourself, visit FreedomInsurance.com today!