It can be hard to discuss disability insurance. It’s not a conversation many of us want to have. The longer that we put off discussing our options though, the greater financial risk we put ourselves in. Illnesses or injuries can occur when we least expect them, and disability insurance is uniquely positioned to help us through these unexpected hardships.
When you become sick or too injured to work, disability insurance is able to replace a portion of your income for it a period of time. This can give you room to breathe financially while you recover, relieving stress and addressing that temporary lack of income.
What Many Think About Disability Insurance – And Why They’re Wrong
Despite disability insurance providing a significant amount of coverage, many choose not to have a policy cover them when injury or illness leaves them disabled. Many of the reasons people give for why they haven’t purchased disability insurance often fall under a few common assumptions about what disability insurance is for and what it does or doesn’t cover.
It’s important to make sure your choice about disability insurance is not based on one of these misconceptions:
- I Need to Work Full Time to Qualify – Personal disability insurance is not limited to only full-time employees. If you’re part time, self-employed, or even a stay-at-home partner, there is a disability income insurance policy that works for your situation. There may be fewer potential insurers depending on your specific situation, but that shouldn’t stop you from finding the coverage you need.
- My Job Offers Coverage, I’ll Use That – Not only do employers only cover a small portion of your salary in the event of an injury or illness, the funds they are able to offer are still taxable. Your employer has to pay those premiums either way, and you’ll see that reflected in your paycheck. This means your income will go down without disability insurance if you plan on relying on your job’s coverage.
- I’ll Save Money Staying at Home to Recover – While this may seem like a fair expectation, the money that you will save from not needing gas or from avoiding going out due to your situation can be quickly drained on medical expenses or additional household expenses.
- I Have My Own Emergency Savings Put Away – It is always important to have enough savings or an emergency fund ready to handle the unexpected. But how long would that fund actually last if you were using it on monthly bills? And how long would it take you to refill your savings account once you started receiving paychecks again? Disability insurance can alleviate these issues and make your monthly financial burdens easier to bear.
It can be easy to see our employment as a constant, it’s our job after all. But protecting your income can often be just as important as protecting your health. Without one, the other begins to suffer. If you are injured or become too up sick to earn a consistent paycheck, how will your bills get paid? Disability insurance can help provide an answer and relieve tension when things get tough.
