Most people buy life insurance because they want to protect their families in the case of a traumatic event.
However, while you should absolutely have life insurance, you should also carry disability insurance in case you have an accident or become ill and unable to work.
Carrying this type of insurance is especially important if you have a family to support.
Long term disability and short term disability insurance are both essential when it comes to maintaining your family’s financial health.
Whether you are the main breadwinner or not, you should carry disability insurance in order to cover the costs of your care and your family’s expenses in the unfortunate event that you become disabled.
What is Disability Insurance?
Disability insurance is meant to cover your medical bills and general life expenses in the event that you are permanently or temporarily disabled and incapable of working or performing regular daily tasks.
Disability insurance is often bundled with life insurance, but you should understand how life and disability insurance are different.
Life insurance will help to cover your family in the event of your death, while disability insurance – long term or short term – will cover you in the event that you are unable to work for a certain length of time.
Disability insurance can provide income replacement if you can no longer work due to injury or illness, and it can be an important part of your financial protection plan.
What is Short Term Disability Insurance?
Short term disability will cover you for lost wages if you are temporarily unable to work in the case of an acute illness or injury.
Long Term disability will provide a longer coverage term.
The chances of you becoming disabled – permanently or temporarily – are higher than you think.
Disabilities are different from major workplace accidents that are normally covered by your employer’s workers compensation insurance.
Disability insurance covers diseases like cancer or other chronic conditions like back problems or repetitive stress injuries.
Approximately one in four individuals will experience a short term or long term disability before they retire according to the U.S. Social Security administration.
Why Do You Need Disability Insurance?
Everyone should carry some amount of disability insurance, because accidents and illnesses can happen to everyone.
The amount that you should carry depends on the type of job you have (construction jobs or other physically hazardous careers are more dangerous than office jobs, for instance), any pre-existing conditions, and a variety of other factors.
You should also carry life insurance, especially if you have family or other dependents.
If you pass away you’ll want your children, your spouse, and anyone else that you are responsible for to be adequately covered.
The last thing you want is for your loved ones to worry about money or any kind of financial burden while they are grieving.
How Do You Choose The Right Type of Life and Disability Insurance?
Your insurance agent can help you determine what type or types of life and disability insurance that you need.
Even if you are already disabled or have another pre-existing condition, that doesn’t mean that you can’t get life insurance or disability insurance.
Disability insurance and life insurance rates vary by company or provider, and different companies may underwrite various conditions or illnesses differently, so don’t be afraid to ask your insurance agent questions.
The best time to apply for life insurance and disability is always right now.
Note that while applying for life insurance and disability are two separate applications, the process is similar and you can often get just one physical exam and use the same set of medical records for both.
What Type(s) of Life and Disability Insurance Do You Need?
Getting long term disability insurance and life insurance can be a simple process, and it may be easiest to apply for both at the same time.
Your insurance agent can help to streamline the process and bundle things together in order to make sure you get the best rates for your disability and life insurance.
You should also be aware that while life insurance and disability insurance are two separate policies meant to address distinct issues, you may also be able to add a disability rider or endorsement to your life insurance policy.
What Other Types Of Insurance Are Related to Disability Life Insurance?
Life insurance in general as well as other medical insurance are just as important when it comes to protecting your family’s financial health.
Often disability insurance can be bundled with life insurance – your insurance agent can advise you as to the best package for you.
You need to ensure that you and your loved ones are protected in the event of an illness or disability that leaves you unable to work or even your untimely death.
The money from disability insurance is meant to help cover day to day expenses like your mortgage or rent, along with medical bills and any other expenses incurred while you are disabled.
Life and disability insurance can also help pay for things like student loans while you are disabled, or even provide college funds for your children (in the case of life insurance).
Depending on your family and finances and the state of your health, the cost of disability and life insurance can be well worth it in the end.
Speak to an ASCO Insurance specialist today and learn about the best disability insurance options.