Are you in the process of deciding whether or not you need disability insurance? If you are young and healthy it is all too easy to think that you do not need to worry about disability insurance until later in life. However, did you know that approximately a third of all adults will experience a disabling injury or illness lasting longer than 90 days?
The financial repercussions of being unable to work as a result of illness or injury can be debilitating, but disability insurance benefits can provide a lifeline in your time of need. Correspondingly, let’s discover three reasons why you need disability insurance.
You Have Financial Obligations
Almost everyone has financial obligations and relies on their income to cover these costs. Mortgages, car payments, and debts can all spiral out of control if you are out of work and unable to bring home a salary. This can become even more stressful if you are the primary breadwinner and have a family to support. If more than one person is dependent on your salary, you need to ask questions about whether your family would be able to enjoy the same quality of life if you were temporarily unable to work.
Disability insurance benefits can be used to provide income in the event that a person is unable to perform their work and earn money as a result of a disability. While disability insurance is not typically a legal requirement, knowing that you have a disability insurance policy in place can provide peace of mind that you and your family are financially protected if ever you were to become injured or ill. In some cases, disability insurance might even allow you to avoid declaring bankruptcy or experiencing foreclosure. Facing a financial crisis can be frightening and therefore if you do not have any emergency funds or savings in place, disability insurance could be a worthwhile place to start.
You Have a Genetic Predisposition
Has a member of your family become disabled because of arthritis, a stroke, or any other condition with a suspected genetic component? If so, there is a chance that these conditions might have been genetically transferred to you. It would therefore be much more likely that you might need to depend on disability insurance benefits in the future. Buying the right insurance policy at an affordable price can be difficult if disability or health conditions run in your family, but there are insurance providers out there that specialise in coverage for these specific circumstances.
Although some disability insurers can disqualify you from coverage if you have a family history of certain illnesses such as cancer, being upfront about your medical history is vital. Furthermore, if you know that there is a relatively high chance you will become disabled and unable to work at some point in the future, buying insurance is the best method to secure your finances regardless of what actually occurs with your health. In addition, when applying for disability insurance, you might want to complete a needs-analysis that takes your current and ongoing expenses such as any mortgages, debts, and savings into consideration.
You Work in a Hazardous Environment
While it is important to note that accidents can happen in even the safest of places, it is undeniable that some professions are naturally riskier than others. For example, if you work in a manufacturing job, your chances of being involved in an accident are typically higher, and you are also at an increased risk of experiencing stress or strain on your body. That being said, if you do work in an occupation with a high risk of injuries, then your employer is much more likely to provide short-term or long-term disability insurance coverage.
Are there people in your workplace who have had to take time off due to disabilities or injuries? If so, this is a further sign that investing in disability insurance should be a priority. With this in mind, it is also useful to know that insurers typically use a Standard Industry Code for every occupation when calculating disability insurance rates. This code looks at the characteristics of each specific industry to determine an approximate assessment of risk. Above all, while you might initially pay more because of your occupation, doing so will provide you with the peace of mind that if you are unable to work, you will still receive substantial benefits.
Ultimately, every single one of us has lifestyles that we need to maintain. With the cost of living only expected to increase, it has never been more important to take out disability insurance for peace of mind that your livelihood is fully protected. You can never be too careful and disability insurance should not be overlooked as a precautionary investment in your future.
Looking for even more ways to secure your finances? Take a look at this useful guide to discover three things you need to think about before investing in life insurance!