Disability Insurance: How Can It Benefit You and Why You Need It Now

Benefits of Disability Insurance

Disability Insurance provides you with income protection if you are unable to work due to an injury or illness and you can’t rely on your other income streams or your partner’s income alone. Disability Insurance benefits will provide your family with the means to pay your bills, keep food on the table, and continue day-to-day life until you’re able to go back to work again. You might be asking yourself, “Why would I need this?”

Disability insurance can help replace some or all your income if you’re temporarily or permanently unable to work due to illness, injury, pregnancy, or childbirth. There are two basic types of disability insurance: short-term and long-term. Short-term disability (STD) pays out for up to 12 months; long-term disability (LTD) may pay out for years, but coverage length depends on individual policies. Disability insurance is most often used by people who work in physically demanding careers that require them to be active and healthy, so it tends to cost more than other types of life insurance. As a result, it’s often not covered by employer benefits programs, although some companies do offer group plans at an affordable price.

Disability insurance will typically cover at least 60% of your gross income, with some policies covering as much as 75%. If you’re earning $5,000 a month from your job, for example, you could see coverage of up to $3,750 each month. Of course, there are limits on how much is paid out. For short-term disability insurance, which usually lasts for 90 days, limits are usually around $12,000 to $15,000 a year. For long-term disability insurance, which typically lasts for five years, it’s more likely that you’ll hit your payout limit in only one or two years.

A lot of people are questioning whether disability insurance is worth it, especially in today’s economy. Many people can feel as though their employers provide them with sufficient benefits to cover them should they become disabled and unable to work. Is your employer benefit income-tax free? There are many reasons why you should purchase your own DI policy; here are just a few: Disability Insurance isn’t just for disabling injuries. Disability can come in many forms, including mental illnesses and chronic conditions. Mental illness has one of the largest stigmas attached to it; however, it doesn’t mean you don’t deserve a comfortable financial life if your mental illness causes you to miss days at work.

Short-term benefits of DI might be more obvious: If you’re unable to work because of an accident or injury, DI can help pay for living expenses and medical bills. But long-term benefits can be even more important. Long-term disability insurance protects your ability to earn an income, should something happen to make working impossible. Having a stable source of income helps you maintain other kinds of insurance as well, including health and life coverage, which protect your health and your family’s future financial security. Keeping all these types of coverage intact reduces risk overall meaning that no matter what happens in life, you’ll still have resources available to provide for yourself and your loved ones.

Disability insurance can benefit you and your family in many ways, so regardless of what you do for a living or whether you can currently afford to buy it, everyone should secure disability insurance. Just like with life insurance, if you don’t need it today, chances are that at some point in your life you will need it. Imagine not being able to work because of an illness or injury: What would happen to your bills? Your mortgage? Your family? Depending on your profession and income level, having disability insurance could be beneficial when you need it most.

As you can see, there are many types of disability insurance available and each one has their own set of benefits. You should carefully consider your options to make sure that you’re able to get enough coverage at a price you can afford. The last thing you want is to put off signing up for disability insurance only to discover an emergency where you suddenly need it. By investing in disability insurance now, you’ll be able to sleep better at night knowing that if an emergency arises, it won’t affect your quality of life or finances as much as it could have.

Contact Advisors Insurance Brokers for more information regarding the benefits of Disability Insurance (800) 695-8224.