Human nature being what it is, we tend to underestimate the chances that misfortune will come our way. Our internal monologue goes a little something like this: Who me? Die? Never! I don’t need life insurance. We often apply the same faulty logic when it comes to disability insurance. We just don’t think it could happen to us. Here are 5 reasons we should reconsider:
Find out now: How much life insurance do I need?
Disability insurance provides you with cash flow if your disability keeps you from earning a living. Sounds pretty great, right? Below you’ll find our top 5 reasons to have disability insurance.
1. It may be as simple as opting in at work
Though the practice seems to be on its way out, many larger companies still offer disability insurance as part of employee benefits packages. Often, this insurance is free to you when you opt in, but some employers offer low-cost options with employee-paid premiums. If you have the option to get disability insurance at work, consider taking it! Buying disability insurance on the individual market can be pricey, but as an employee you’ll get access to group rates. (If you’re a service-disabled veteran, you may be eligible for disability insurance through the VA.)
2. Social Security can’t do it all
But wait? Doesn’t Social Security offer disability insurance? Yes, it does, through both Social Security Disability Insurance and Supplemental Security Income. The problem, though, is that these benefits can be slow to arrive and probably won’t meet all your needs. It can take over a year to start receiving Social Security Disability Insurance – if your application is approved at all. When it comes, it might not be enough to replace what you were making before.
3. Even office workers can become disabled
Think disability only happens to coal miners and people with other dangerous, physical jobs? Think again. The act of sitting down all day, staring at a computer and typing can be its own risk factor (I’m sitting up a little straighter as I write this). What if you develop a repetitive stress injury and can’t type? Now that’s a scary thought.
4. Your dependents need your income
If you’re single, childless, footloose and fancy-free, you might not need disability insurance – provided there’s no one who depends on your income, like an elderly parent. If you do have dependents, you’ll want to protect them with disability insurance the same way (we hope!) you’re protecting them with life insurance.
Find out now: Types of Life Insurance
5. It’s not as expensive as you might have heard
Disability insurance premiums can cost as little as 1% of your income, and the insurance should cover two-thirds of your income, year after year, should you develop a long-term disability. That doesn’t sound like too much to pay for peace of mind – and security for your family.
Photo credit: flickr