Someone who is 20-years-old has a 30 percent chance of being disabled before reaching retirement. Everyone at some point in their lives, typically when they are younger, thinks they are invincible. Since we are not invincible, when you start a career, you want to protect your assets. You might be thinking this is irrelevant and that you don’t need or can’t afford to pay for disability insurance.
But think about this – can you afford to not have disability insurance if you suddenly find that you cannot work and pay your bills? There are a number of different kinds of disability insurance – mortgage disability, credit disability and individual disability income. The ironic thing with insurance is that people go ahead and insure their lives, because they realize it is valuable to do so. However, those same people do not insure their livelihood. The bottom line is this – your ability to work and earn money to pay the bills is one of the least protected assets you have.
If you lost your job tomorrow because you had been in a car accident and rendered a quadriplegic, how would you make money? Any savings you had on hand would be wiped out fast, as we all know medical expenses these days are astronomical. Very soon, you would be strapped for cash and wondering how you would be able to live. If you have disability insurance, you have a plan in place for the unexpected moments that happen in life.
Disability insurance does not have to be expensive and you can ask an experienced insurance agent for assistance in choosing the right policy for you. That’s their job, and they can find you the best deal. Do not leave finding the right disability insurance policy to chance, as you may choose the wrong one and it won’t cover you for what you need.
Individual disability income typically replaces about 45 to 60 percent of your gross income tax free. Coverage is provided if you become disabled as a result of an illness or an accident. But the policy should offer more than that. For instance, make certain the policy covers you if you are not able to work in your current job, not just any occupation. You will also want to ask if the policy is guaranteed renewable so long as you keep paying the premiums.
Generally speaking, most policies like this are payable up to the age of 65, although there are some companies that may provide extended coverage up to the age of 70. Keep in mind that there is usually an elimination period – the length of time you must be disabled before the policy takes over. That could be anywhere from one to six months. By the way, the shorter the elimination timeframe, the more expensive your policy will be. You might want to take that into consideration when you are buying disability insurance. Additionally, what you do for work is related to the likelihood that you may be injured and not able to work in that particular job.
For expert help in choosing the right disability policy for your lifestyle, consult with a knowledgeable insurance agent who can point you in the right direction, and find precisely what you need to take care of the most important thing in your life, your ability to keep financially stable.