Unfortunately accidents happen. Some of these may unfortunately put you in the hospital for weeks, followed by months of rehabilitation. Or you are not able to work or leave the hospital because of a permanent injury.
Health insurance might pay for your medical expenses, but you need something like disability insurance to make your mortgage payments and pay your household expenses?
Disability Insurance Is The Answer
For most of us the answer is disability insurance, which provides income when an illness or injury makes it impossible to earn a living. Disability insurance is the policy to have, whatever your age, to continue the income you need.
What Does Disability Insurance Do For Me?
While employers often provide short term disability, few companies offer long term disability insurance unless there is a union contract. If you don’t recover, or have your own disability insurance contract, you will have to use your savings to survive.
Accordingly, it is in your best interests to protect your income and earnings with a personal disability insurance policy.
How Much Disability Insurance Do You Need?
No insurance company will insure you for your full income as generally the payments are not taxable. Another consideration is: if you have group disability insurance from your employer, there may be a cap on how much you can get.
Some Additional Disability Insurance Benefits:
Escalator Rider – an benefit that annually increases the amount of your income .
Return-To-Work-Provision – a benefit of your disability insurance policy that pays you a portion of your disability income if you can work part time.
There are numerous other disability insurance riders which can be added, but which increase the overall cost of the insurance policy. Employer group disability insurance policies are not portable, which is the best, most simple reason to own personal disability insurance.