In the event of an injury, health insurance can cover your medical bills. But what if you are unable to work for an extended period of time. A serious injury or illness can happen to anyone. If you are unable to earn a living anymore, disability insurance can be the difference between paying your bills and missing payments.
Having disability insurance is a must, especially if you have a high-risk job. This involves jobs like being a police officer or working in construction.
Here are some of the biggest benefits of having disability insurance.
Financial Obligations are Taken Care of
Everyone has financial obligations. Not being able to fulfill these obligations can lead to unwanted consequences.
When you become a homeowner, you must make monthly payments on your mortgage loan. This requires you to have a steady source of income. If you are unable to make these payments regularly, you risk losing your home. Even if you have the best health insurance plan available, it will likely not be enough to cover the income you may lose because of an injury.
Long-term disability insurance is something that can help you in these tough circumstances. This policy ensures you can meet your financial goals and protect your assets.
Helps Make Up for Insufficient Disability Coverage Through Work
Sometimes your employer may offer a group disability coverage plan. While this sort of coverage is often inexpensive, the drawback is that it is usually not enough by itself. This is because these plans often come with a cap on the benefits, which can negatively impact you.
Group disability benefits are calculated on your base salary alone. The policy does not account for your bonuses or commissions, and even then, the benefits are also taxed. Another con is that this coverage can be canceled by your employer at will. You will also lose coverage if you leave your job.
On the other hand, individual disability insurance plans are much better comparatively. This is because their benefits scale depending on your total income. Another plus point is that the benefits from these plans are not taxed.
It Can Help Financially Secure Your Family
Starting a new family is not easy. There are a lot of things that need to be considered including providing for your family’s financial future. Taking the time to prepare in case something goes wrong is a smart decision to make.
This is where something like a life insurance policy can be helpful. The financial protection it provides is a perfect cover for your family in case you pass away is immense. Just like life insurance, disability insurance can also play a significant role in securing your income.
Research suggests that at least 70% of Americans will have financial problems soon after losing their income. Having disability insurance and life insurance can ensure you and your family continue to thrive.
While you may think that disability insurance is not something you need, having it can provide massive benefits. The minimal monthly premium you may pay for a plan can guarantee that you and your family will survive any financial hardship that comes your way.