The Necessity of Disability Insurance

A prolonged disability can cause just as much financial hardship as a death in the family, if a breadwinner is affected. A disability can be defined as an occurrence that leaves a person mentally or physically sick or hurt to the point to where they are unable to work. How long a person is disabled is usually not under his or her control, but when you don’t work, you usually lose your income at some point along the way, and that is what disability insurance is designed to cover – the income loss.

Think about it. How long could you carry on a normal life if your income stopped today? What would you lose if the disability persisted for an extended period of time? Could you possible lose your car if you were unable to make the car payments, or what about your house? How long would the mortgage company allow you to make no payments before they would foreclose?  Working with your employer or a good company like will allow you to secure the best rates on disability insurance.

These are real questions that happen to more people each year than people think. According to the statistics that are kept by life and health insurance companies who underwrite disability income protection policies, there are more people disabled each year than there houses that have a fire each year, by a factor of 5. That means that you are probably five times more likely to be disabled to the point where it can really get financially uncomfortable, than you are to have a fire in your home.

Disability policies are sold for a period of years, say for one, five, or to age 65. They will have a waiting period of a week, a month, or 6 months. A benefit period can be for a year, two years, 5 years, or to age 65. The benefit amount is the amount of money that is paid to you once you become disabled.

If you don’t currently have disability coverage, you should look into it and protect your assets.

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