Disability insurance is an essential way to secure your family’s stability. It provides a portion of your income if you are unable to work due to a disability. The portion of your income that is replaced varies. In general, many plans will provide two thirds, or 66%, of your pre-tax income.
It is one of the most commonly acquired forms of insurance, and is often included in employer’s benefit packages. If you are self-employed, and particularly if you are your family’s primary source of income, disability insurance is especially necessary. What’s more, while you might have coverage from a group plan, it may not be enough.
Even if you are currently healthy, purchasing disability insurance is a way to protect your family’s income down the line. One in three people will be disabled and unable to work for 90 days or more before they are 65.
Those 90 days or more during which you’re unable to work can arrive in many forms. Disability insurance covers both chronic and unexpected health problems, as well as temporary and permanent disabilities. The ailments it covers can be physical as well as mental.
Disability insurance provides a monthly income when you are unable to earn one (unlike [critical illness insurance], which helps in unexpected scenarios with a single payout) to replace your regular monthly income.
Once you have filed a claim, disability insurance’s monthly payouts keep your family’s regular finances afloat. It may also prove essential to cover the unexpected additional costs of a health crisis, such as medical expenses, devices, and prescriptions not covered by insurance.
No matter the scenario, disability insurance keeps your finances on track. Here are three essential factors to keep in mind:
Have an expert on your side to determine the insurance that will best protect your family. Contact SafeBridge today.