If you’re disabled, disability insurance may be necessary. Here are five questions you can ask yourself to help decide whether disability insurance is right for you.
If You Have an Income to Protect
Regardless of whether your income is large or small, you can protect it. Many affordable options are available for protecting both large and small incomes Everyone who has a paycheck should consider protecting said paycheck. If you have a job that provides health benefits, life insurance, retirement savings, or other forms of protection, you should also consider adding disability coverage to your plan.
Family Members Rely on Your Income
One of the big mistakes people make is thinking that they can cover the shortfall of a lost income stream, just because they have two incomes in the family. The reality is that if one person loses their job, then the entire household will suffer financially. It’s important to think about how much money you’d need to replace if something happened to you.
You Can’t Afford to Lose Time Off Work
Disability insurance isn’t meant to replace your regular paychecks. Instead, it helps you keep up with bills while you recover from a disabling illness or injury. In addition, many employers offer paid leave programs for employees who become ill or injured. These programs provide workers with time off work without having to worry about losing their jobs.
Your Health Is at Risk
Disabilities aren’t always caused by accidents. Some illnesses, such as cancer, can cause disabilities even when there was no obvious reason for them. This means that you could lose your ability to earn money due to a chronic disease. When this happens, you’ll need disability insurance to help you pay for medical expenses.
You Could Be Entitled to Government Benefits
In some cases , government agencies like Social Security and Medicare will cover certain costs associated with a disability. For example, if you’re unable to work because of a mental disorder, you may qualify for disability payments. However, these benefits don’t come automatically. You must apply for them.
If you’re beyond your working years, if you’ve accumulated an investment portfolio with enough income to meet your present and your future financial goals and dreams and you don’t need disability insurance, then you don’t need disability coverage.
If you answered yes to any one of these five questions, you may want to consider disability insurance as part your comprehensive financial plan. A certified health and income specialist can help you and work with your advisor to avoid the emotional or financial devastation due to an unforeseen disability.