What Is Disability Insurance?
In general, disability insurance covers some of your income if something happens to you (like an illness or injury) and you can’t work. The younger and healthier you are, the easier it is to qualify for a policy. But as you age, premiums increase. And if your health goes south, you may find it hard to qualify for an affordable policy at all. But disability insurance doesn’t just cover freak accidents. Most claims are for things you may not realize are considered disabilities, like physical injuries, a heart attack, or cancer. These things could happen to anyone in any workplace.
Why You Need Disability Insurance
Think none of these will happen to you? Think again. The Social Security Administration (SSA) reports that one in four of today’s 20-year-olds will become disabled for 90 days or more before they turn 67 years old—and that a massive 68% of non-government workers have no disability insurance.(1) Yikes! Having a plan for the long term – beyond a 3-6 month emergency fund – is important not only to you, but also the people who rely on your income. How much better would it feel to know money is still coming in while you’re recovering?