Who needs disability insurance? Anyone who relies on a stable income

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  • Disability insurance can replace your income if you are unable to work due to illness or injury.
  • Most disability claims don’t come from work-related accidents, but from disease, cancer, pregnancy and depression.
  • If you are supporting your family or working for yourself, you should consider disability insurance.
  • Check out the insider’s guide to the best disability companies.

Disability insurance is like insurance for your salary if you are unable to work.

Despite popular belief, disability insurance is not just for workplace accidents. The most common disability insurance claims after work-induced musculoskeletal disorders (think: carpal tunnel, tendonitis and back pain) are for cancer, pregnancy and mental health issues like


and anxiety.

Many of these things can happen at any time without warning and prevent you from doing your usual job duties or showing up at all. And more often than not, Social Security disability will not cover your loss of income to the fullest.

Here’s why you should consider purchasing disability insurance:

1. You are the breadwinner

If your career is your most important financial asset, you need disability insurance not only to protect yourself against lost income, but also for others who depend on you.

Whether you are financially supporting a partner, children, elderly parents, or anyone else, disability insurance can help make sure they are taken care of if you are ever unable to work due to injury or illness. ‘a sickness. When you buy a policy, you choose exactly how much you want to receive each month as a benefit and how long you want it to last.

2. You repay your debts

Millions of millennials and millennials are going into debt, mostly because of credit cards and student loans. If you have to pay large monthly payments, a sudden loss of income can affect your ability to make them in full and on time.

Factoring in the amount you pay for the debt balance each month into your coverage amount will ensure that you don’t fall behind in the event of injury or illness, even if it’s temporary.

3. Your employer does not provide sufficient coverage, if any

Most traditional employers offer short term disability insurance, but it usually only replaces 60% of your income for about three to six months, and you will have to pay taxes on the payments.

These policies obviously depend on your employment with the company. If your injury or illness results in job loss, you’re out of luck.

That’s why experts recommend long term disability insurance for the most “comprehensive and cost effective” coverage. Long-term disability insurance can effectively pick up where short-term coverage or your emergency fund left off, typically between 90 days and a year after the incident (this is called the period of time). elimination or waiting).

4. You work for yourself

Disability insurance is crucial for the self-employed, freelance writer Jackie Lam wrote for Insider. An insurance benefit can help provide constant income and cover ongoing business expenses.

If you are self-employed and shopping for disability insurance, you will need to provide income tax returns for the past two years as proof of income. You can also consider paying a higher premium each month to shorten your waiting period or the time you have to wait to receive insurance payments, since you don’t have short-term coverage from an employer for you. to help.

About Antoine L. Cassell

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