Why You Need Disability Insurance

According to the Social Security Administration, one in four 20-year-old employees will become disabled by their sixty-seventh birthday. What would you do if an injury or illness prevented you from working? Unless you have accumulated adequate savings, you may have trouble paying your daily living costs. Protect your right to earn a living and receive peace of mind with disability insurance.

What is Short-Term Disability Insurance?

While this type of policy won’t cover the full amount of your regular wages, it will pay 60 to 70 percent, which is better than nothing. Your policy will outline the wait period, which could be as long as two weeks or as short as one day. Under short-term disability, you’ll receive replacement wages for up to six months.

What is Long-Term Disability Insurance?

Designed for extended or permanent times of illness or disability, long-term disability insurance begins after short-term disability ends. You might be able to extend your policy benefits annually, depending on the policy.

You Can’t Rely on Social Security

You may put off purchasing disability insurance because you think you will automatically qualify for social security benefits when an injury or illness prevents you from working . That’s not true. Your claim could be one of the 50 percent that are denied. If you are approved, benefits won’t start for at least six months and may be a faction of the income you need.

Your Pension may not be Enough

A pension from the government or a private company may provide disability benefits. They typically are reduced, though, based on the permanence of your disability and other benefits you may receive.

You can’t predict when a devastating illness or injury will happen. However, it could jeopardize your ability to work. Talk to your insurance agent to determine which disability insurance fits with your overall financial plan as you obtain financial peace of mind.