Disability Insurance Policy

Disability Insurance Policy: Do You Need One?

Many people don’t even think about disability insurance until after they have an incident where they could have used it, especially if they don’t have a family. One never thinks about the potential of having something have with no way to cover it because we tend to think we are immortal, especially when we are young. The idea that we can live without health insurance because we see the doctor so rarely, and we can live without disability because we are never sick are attitudes that can play havoc with finances when tragedy strikes. It’s foolish to think that you will never need to be off work on disability because if you drive to work, you have a 50/50 chance of being in an auto accident on your way to or from work, or any other place, for that fact. Worse yet, you could fall down the steps in your home for any number of reasons and break your leg.

Why Spend Money on Insurance I Don’t Need?

The problem with thinking we don’t need disability insurance is misguided. Though you may think you have no need for a disability insurance policy, that is far from the truth, especially in this day when auto accidents are on the increase, people are being assaulted in their homes, and the children are bringing home all kinds of germs from school and daycare. Anyone who thinks they do not need disability insurance is playing devil’s advocate because eventually something is going to happen. Sometimes it’s easier to think that we won’t need the insurance than to consider the possibility that we might not be as immortal as we think we are. It equates to the man or woman who refuses to write a will because they don’t like to think about the possibility that someone they will die. One day most of us will need to use at least a short-term disability policy, so the wise thing to do is make sure it is available when we need it to prevent financial chaos taking over our lives when that day comes.

Why Do I Need a Disability Insurance Policy?

If you own a car, home, pay rent, have credit cards, eat, wear clothes, use electricity, buy gas, or use heat, you need a disability insurance policy. Why is that? Because the statistics speak for themselves: over 95% of people are one paycheck away from bankruptcy! That means simply that almost everyone lives from paycheck to paycheck, and if that paycheck is missing, they will not be able to pay for even the bare necessities. Very few of us have enough money saved in the bank to cover our expenses in case of a medical catastrophe, so thinking we can live with a disability insurance policy is like saying we can live without water or food. It simply is not realistic to think that you will never be out of work longer than those covered by your sick days will. Of course, yes, you can get social security – IF you’re going to be disabled longer than six months, and IF you can manage to be approved. According to statistics, 80% of those who apply for social security are denied the first time, and it is not uncommon to be denied three times before being approved, and that’s if you are smart enough to hire a lawyer to help you with the appeal process. In addition, even though they tell you that you are qualified if you’re going to be totally disabled for over six months, they have denied people who have been disabled for up to a year because their illness was not permanent.

My Employer Doesn’t Offer Disability Insurance – Where Can I Go?

Search on the Internet or call around where you live because most all insurance companies sell short-term and long-term disability insurance. Before you call, make sure you have your figures down because how much you need, how long you need it, and the waiting period all affect your premium. Do not take any more than you need to replace the income you have coming in now, and take into consideration that insurance money is not taxable. Thus, your determination of amount should be based on your net salary and not your gross. Obtain several quotes before you make a decision and make sure your answers are accurate so that you receive an accurate quote.