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Disability insurance may not be something you want to think about. However, the longer you ignore it, the less protected you are against long-term financial risks, due to unexpected illnesses and injuries. Read on to learn more about why you need this important benefit.
You might be surprised to learn that social security disability benefits are not available if you are expected to be out of work for less than a year, and there are additional criteria to consider. One year without income could deplete your savings and have a significant impact on your finances.
If you were unable to work due to illness or injury, disability insurance can help to pay for essential expenses, including food, utilities, school tuition, mortgage, and car payments.
According to the Council for Disability Awareness, back injuries, cancer, heart disease, and other illness contribute to the majority of long-term disability claims.
In 2020, the U.S. Social Security Administration reported that more than 25 percent of 20-year-olds will experience a disability that keeps them out of work for at least a year before they reach retirement age. Fortunately, disability insurance helps you maintain a steady stream of income when you can’t work due to illness or injury. What’s more, it’s easier and less expensive to get disability insurance when you’re young and healthy.
You will need to meet your essential living expenses if you should become disabled. This easy-to-use calculator can help determine what amount of disability insurance is most appropriate for your situation.
Check to see if disability coverage is made available to you through your employee benefits package. You might want to look carefully at coverage, since group benefits alone may not be enough, due to potential benefit limitations and types of income covered.
When you purchase disability insurance, the company you buy from is making a long-term commitment to you. If you become disabled, there is a chance you will receive benefits for an extended time period. So, it makes sense to buy from a company with experience, financial strength, and a solid reputation. Talk to financial professional to find out if disability insurance should be included in your financial plan.
Nothing in these materials is intended to be advice for a particular situation or individual. These materials are for general information purposes only.