Who Needs Disability Insurance?
Ask most people to think about their most valuable asset, and they’ll mention their home, their car, their jewelry or other “things.” But for most of us, it’s actually our ability to earn a living. And just as you insure your car, home or other valuable possessions, you need to insure yourself in case you
are no longer able to work. That’s what disability insurance does. It provides a source of replacement income if you’re unable to work due to an illness or accident.
If becoming disabled may seem unlikely, the odds may surprise you. Roughly 30% of Americans will suffer a disability lasting 3 months or longer before the age of 65. Nearly 20% of Americans will be disabled for one year or more during their working years.
For many, a sudden interruption of income could have serious financial consequences. Most of us have some kind of personal debt, typically a mortgage and/or credit card bills. Would you be able to maintain your standard of living if you were unable to work? Half of all home foreclosures in the U.S. result for disability as do an alarming number of bankruptcies. Simply put, if you have a job you like need disability insurance.
The other thing to keep in mind is that an accident or illness that keeps you out of work for a period of time can be very costly. That’s because people who become disabled not only need to continue providing for loved ones, but for themselves as well. A disabling injury or illness could lead to medical bills, modifications to your car, home or other unforeseen events. For all of these reasons, almost anyone who has a job needs to consider disability insurance.