Protection for your most valuable asset – your income
Think of disability income insurance as protection for your income. What would happen if you were suddenly unable to go to work and didn’t receive your paycheck for three months? What about two years? Could you pay your bills on time and would your family have enough to meet everyday living expenses? Maybe you think this would only happen if you suffered a terrible accident, but that’s not true. Only 10% of disabilities are because of accidents. The other 90% are from illnesses, such as heart disease, cancer, and diabetes.
Your income is the foundation for all your expenses and the beginning of a solid financial plan. Individual disability insurance can provide the income protection you’re missing.
What is disability insurance?
Individual disability insurance is income continuation or replacement income. If you’re injured or become ill, your disability benefit will replace a percentage of your income while you’re unable to work. Income protection insurance pays you so you can pay your mortgage or rent, buy groceries and meet other ongoing living expenses.
How does disability insurance work?
Disability insurance is a lot like car insurance. Auto insurance is designed to protect your car against damage and could help pay medical bills if you’re injured in a car accident. You pay a monthly fee for this safety net, just like you do for individual disability insurance, which provides protection if you’re unable to work due to an illness or injury. It’s protection for your most important financial resource: your ability to earn an income.
Who needs disability insurance?
If you and your family rely on your income to contribute to your daily expenses, you need individual disability insurance. Imagine being sick for an extended period and not having income continuation. Instead of focusing on getting better, you’d be worried about how you’re going to pay the bills.
Still, think you don’t need disability insurance? Check out the stats below in “Consider the odds of not having disability income insurance.”