Why DISABILITY INSURANCE?
The 5 BIG REASONS
Individuals buy disability insurance to
protect against loss of earnings due to a job loss. There are two types of
disability insurance, short-term and long-term. Short-term provides you with
payments if you are out of work for an extended period due to illness or
injury. Long-term disability is designed to pay out if you are permanently
unable to return to work.
#1 . Obligations
If you have a mortgage, car payment or student debt
obligation, what would happen if you lost your income source temporarily? The
biggest concern for most people is a mortgage payment in this scenario.
Disability insurance may be the only thing protecting you from delinquency, or
even foreclosure, if you are unable to work due to illness or injury.
#2 You Have a Family
What would your family do if your income was no longer
reliable? Head of household individuals are the most common purchasers of
disability insurance for this reason. If you have more than one person relying
on your salary, you have to think about a scenario where that salary was no
longer applicable, and whether the members of your family could continue the
same quality of life, in the case of your disability.
#3 You Do Not Have Emergency Funds
For many people, short-term disability is not a large
threat. They could provide for themselves and their families for three months
or longer in the face of a loss of income. If this describes your situation,
short-term disability may not be necessary, and it may just be an added
expense. However, if you do not have an emergency fund, you should consider
short-term disability a necessity instead of a luxury. You could face immediate
financial crisis if you were unable to perform your work for an extended period
of time.
#4 You Work in a Risky Profession
All individuals face the risk of becoming disabled;
accidents happen, even in the safest of places. However, those people in risky
professions face a much higher incidence of disability than those in safer professions.
If you work in a manufacturing job, you may become disabled or ill due to
stress and strain on your body and not just accidents. Do you know people at
your workplace who have had to take time off? If so, your employer may even
sponsor a short and long-term disability program. You can have access to this
program at a lower rate, and failing to capitalize on that option is
ill-advised.
#5 You Have a Predisposed Condition
You may know that your mother or father became
disabled because of a stroke, arthritis or other condition that may have been
genetically transferred to you. In this case, you have a greater risk of
needing disability insurance. Your insurance may be slightly more costly as a
result, but you should consider the alternative to carrying this insurance. If
you know for sure that there is a relatively high chance you will become
disabled and unable to work, buying insurance is the best method to secure your
future regardless of what occurs with your health.
Again, If you have any questions, please contact me at
MyAbridgeco@gmail.com.
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