Why You Need Disability Insurance
Disability Insurance Basics
- The basic idea behind disability insurance coverage is that it gives you a monthly financial benefit once you are unable to continue working in your normal capacity. After you suffer a disability that keeps you out of work, you may be unable to provide money to support yourself and your family. With disability insurance, you can get a percentage of your monthly income from the insurance company. This will help you pay the bills and keep your home while you are recovering.
Likelihood of Becoming Disabled
- One of the main reasons that you may want to consider buying disability insurance is that statistics say that you are likely to become disabled at some point in your working career. In fact, according to the National Association of Insurance Commissioners, there is a 50 percent chance that you will be disabled for at least three months at some point before you reach the age of 65. Without disability insurance, many would be forced to file for bankruptcy or get into serious debt trouble.
Lack of Other Help
- If you become disabled, you may not be able to receive help from any other source. The Social Security Administration is a government program that provides a financial benefit for people who are permanently disabled. However, if you do not have a long-term disability, you may not be able to get any financial help from any other program. Even if you do have a long-term disability, it is sometimes difficult to get approved for benefits from Social Security disability.
Getting a Policy
- The majority of people who have a disability insurance policy purchase it through their work. These policies are sometimes difficult to come by for individual policy holders. It can be even more difficult to qualify for coverage if you are self-employed. Employers often offer this kind of coverage as a benefit to employees. You can be covered through a short-term or long-term disability insurance policy through your employer. Short-term policies kick in immediately, while long-term policies usually have a waiting period of six months or more.