Insurance has always been one of those bills that we pay but disregard – until something happens. Not everyone requires a pay out from their insurance companies in their lifetime, if they’re lucky. Accidents and unsuspected medical emergencies are never planned and are always difficult to deal with. Not having disability insurance in place can prove to be a detrimental misstep should something happen to any income earner in your household.
Why is disability insurance important?
Disability insurance is your coverage for when you are disabled and unable to work. Accidents happen when and where you would least expect it, and oftentimes they are unavoidable. If in the blink of an eye your lost the ability to earn an income as a result of an accident, would you be able to afford your mortgage and car payments? Disability insurance is there to help when you are unable to earn.
What are the types of disability insurance?
Disability insurance can be offered through your mandatory work deductions, or it can be purchased through a private insurance company. The general types of disability insurance remain the same; Short-Term Disability, typically lasting 120 days, and Long-Term Disability. Each insurance provider will have their own policies as to timing of each designation. Speak with your financial advisor for specifics relevant to your unique situation.
Is it worth gambling with your financial livelihood?
Unfortunately disability insurance is not something you can easily purchase after a life- and work-altering event has already occurred. Having disability insurance in place ensures your family and household can still survive financially in the event of a disastrous unforeseen accident.
Who needs disability insurance?
Everyone with income-earning potential, especially those with dependents and regular household bills, should invest in disability insurance. This is why you often see it as an automatic built-in deduction on your pay stub as provided by group health benefits. But what about the self-employed? You should take all necessary steps to protect your greatest asset, which is yourself, against financial ruin should you ever be in an accident.
Compare it to car insurance
You wouldn’t drive your expensive new car, or any car in fact, without having car insurance in place, so why would you live your life without having disability insurance? Your life is much more valuable than any car, and so is your earning potential.
Don’t leave yourself uninsured and vulnerable to financial distress. There is little to nothing that can be done to prevent accidents, so the best thing to do is be fully prepared by having disability insurance in place. Book a consultation with your financial advisor to learn more.