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Need Disability Insurance?
You know it's wise to expect the unexpected. You've probably purchased at least one kind of insurance to protect your possessions before. You may even have thought as far ahead as life insurance. But how would you provide for your family if you were suddenly unable to work?
We'd like to think we're invincible, but disability resulting from sudden illness or an unexpected injury can happen to anyone; if disabled, your ability to earn a living would be restricted. Could you really rely on your savings alone if disabled for a few months or even years?
You've worked hard to build a home and assets for your family. Disability insurance provides crucial financial protection should you become unable to work. You might think you already have enough disability coverageýthrough your employer or the government. Unfortunately, only around 50% of employers offer short-term disability coverage, and only around 40% offer long-term disability plans. The government's programs tend to only pay benefits if you meet a strict definition of disability.
What You May Already Have And Why It May Not Be Enough
- Social Security: The Social Security Administration denies over 50% of claims. And, even if you were eligible for benefits, you wouldnýt start receiving them for at least six- months after your disability was declared because of Social Security's mandatory waiting period.
- Workers' Compensation: If you were disabled on the job, you'd probably receive disability benefits from a workers' comp claim. How much youýd be eligible for mainly depends on which state you live in. A workers' compensation claim offers limited protection, only paying benefits if your illness or injury is work-related.
- Pension Plans: Government and privately sponsored pension plans that pay a disability benefit usually offer them based on total or permanent disability. Pension plan benefits are traditionally integrated into Social Security or workers' compensation, meaning your overall benefits could be lower than what youýre expecting.
Out Of Work But Not Out Of Luck
The value of a disability insurance plan lies in its ability to offer you protection over the long haul. Imagine what would happen if an injury kept you from working for weeks, months, or maybe even years. Single, you could be left without a means of support. Married, you may be able to rely on your spouse for income. But how long until your financial obligations, be they children or a mortgage, become too much?
Remember, accidents happen. Donýt get caught unprepared.
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