When it comes to insurance, most people consider the investment a necessity. Either it is legally necessary, such as car insurance, or just financially intelligent, such as life insurance.
When it comes to disability insurance, however, many people consider it to be a low priority and only a good investment for some.
That isn’t the case. Anyone who depends on their paycheck to pay the bills would benefit from disability insurance, and here are seven reasons why:
Table of Contents
1. We Can’t Control Everything
As much as we want to control how our lives work out, there are some things we can’t control. We can be the most careful people in the world and still have accidents.
Not only that, but we can also be in the wrong place at the wrong time. We can do our best to mind our own business, but tragedy strikes through no fault of our own.
On the report of statistics, more than a quarter of all young American adults will face disability for more than a year before they are old enough to retire.
Yes, there is a chance that you may never need disability insurance. There is additionally a possibility that you could, and that’s what is important to remember.
Wouldn’t you rather be safe than sorry?
2. Others May Depend on You
You work hard, and sometimes you do it more for others than yourself. If you have a family or other dependents, they look to you for a safe home, food on their plate, and a way to survive this expensive life.
If you were to become disabled and unable to continue providing for these dependents, how would you feel?
You can still care for these individuals if you purchase disability insurance.
The benefits that your policy will provide can help to keep that roof over your loved one’s head, still, put food on the table, and still pay for their daily necessities.
3. Social Security Disability Is Never Guaranteed
Some choose not to purchase disability insurance, thinking that they will receive social security benefits should they ever become disabled.
Unfortunately, many of these same people are unpleasantly surprised to learn that they do not qualify for social security disability benefits when they need them.
Social security benefits are reserved for those who face severe and permanent disabilities and can be very difficult to qualify for.
When you have your disability insurance policy, you decide the terms of coverage you are comfortable with. There are a few essential benefit details to consider.
These include benefit amount, the definition of disabled, and the elimination period. Not sure what these terms mean? Read more about it here.
4. Your Employment Benefits are Lacking
Some employers offer top-notch benefits as full-time employees at their company. However, some do not.
Does your employer offer disability insurance? If not, you should purchase your own. If they do, have you looked into the terms of this policy?
It could be that this policy only includes short-term disability insurance, or only a tiny fraction of your current monthly income would be given in monthly benefits.
Either way, you need more financial protection.
5. You Are Self Employed
It will help if you protect your hard-earned income with a disability insurance policy for those of you who work for yourself. As a self-employed worker, you can’t rely on employer benefits or social security of any kind.
You still have the same chances of becoming disabled as all other workers, and you still have to pay your monthly bills like all other workers, should you become disabled.
6. Bad Credit Follows You For Years
Many who fail to get disability insurance and end up disabled find themselves in serious debt. It could be that they were in debt even before they became disabled.
When you have your ability to work taken away, financial stability is also lost.
Besides the emotional and physical pain, you could also face the pain of having your car repossessed, foreclosing on your home, and dealing with relentless collection agencies.
If you had the forethought to protect yourself with disability insurance beforehand, you would not need to worry about the financial difficulties that disability brings.
7. Physical and Mental Illnesses
While some disabilities are due to a work-related accident or some other unexpected tragedy, most disabilities are simply due to a debilitating physical or mental illness.
Cancer, musculoskeletal disease, and depression are among the top causes of disability in this country.
No one is protected from these diseases.
Conclusion
Looking over these seven reasons, are you reconsidering the need in your life for disability insurance? Hopefully so.
When you are healthy, the affordable cost of disability insurance can save you thousands of dollars if you become disabled.
