How Disability Insurance Protects Your Income

Insurance protection concept drawing

Disability Insurance is a type of insurance policy that protects individuals in the event that they suffer an injury or illness that prevents them from working. Disability insurance will cushion the financial impact of being unable to work and provides the individual or family with supplemental income to cover expenses. While many often think that their chances of suffering a debilitating injury or illness are low, according to the Social Security Administration, individuals ages 30 to 50 have a 43% chance of suffering a long-term disability. DI is incredibly important in protecting one’s income and savings from potential hardships in the future. A sudden injury or illness can significantly impact your life and having disability insurance can protect you and alleviate potential financial burdens on your shoulders.

Typically, disability insurance will cover at least 60% of your gross income. DI comes in two different policy types: short-term and long-term. Short-term policy benefits are designed to provide income replacement for less intensive injuries or illnesses, with benefits usually lasting for around 90 days. Long-term insurance, however, can provide income replacement for an extended amount of time, even up to retirement. Both types of insurance have a total policy limit, meaning there is a cap on the total amount of benefits you are able to receive.

Disability insurance provides policy holders with a safety net for unforeseen circumstances. When you are injured, and unable to earn an income, expenses can pile up quickly. DI acts as your support system and allows you to focus on your health and wellbeing as you will not have to stress over how you will pay your bills.

As DI will be paying you a large portion of your income, this can allow you to keep your savings safe. Not having disability insurance could force you to dip into your savings, or deplete them all together. This could leave you in a vulnerable position for your future and can have a significant impact on your retirement plans.

Another great aspect of DI is that it provides you with peace of mind knowing that in the event of an emergency, you and your family will be protected. Having a plan for your future and knowing what will happen “if and when” can provide relief and a sense of peace. As with general life insurance, the idea that something like that could never happen to you could put yourself in a precarious situation.

Looking for a Disability Insurance Policy that’s Right for You?

A disability insurance policy is an investment in your future! An essential type of insurance, it provides income replacement benefits to cover expenses if you become unable to work due to an injury or illness. An unexpected interruption of your income can wreak havoc on your life. Visit our website or contact our Advisors Insurance Brokers team for more information on our Disability Insurance policies. It’s our privilege to help you determine the right company, the right product, and the right level of protection for you or your clients.