Do You Need Disability Insurance?

Do You Need Disability Insurance?

Editor's Note: This is a Guest post from Bailey Harris

During this time of financial uncertainty, with many wondering if their income will continue to surpass their outflow of cash, a lot of people are cutting corners in an attempt to keep their heads above water. Sacrifices are made on a daily basis. Foregoing that trip to the mall in favor of clipping coupons has become a way of life. Eating at home and saving the restaurant experience for special occasions is frugal and makes dining out more exciting when you do splurge.

There are, however, many areas where cutting corners is inadvisable. Maintaining adequate insurance coverage is one aspect of our lives that any reasonable person considers necessary. If the situation ever arises where something dire happens, having financial protection helps you concentrate on dealing with the problem instead of worrying about paying for the help you will certainly need.

If you bang up your car, auto insurance will bail you out. Homeowners insurance will pay for the siding on your house that's damaged during a storm. The need to protect your family in case of the breadwinner's death is a no-brainer. But most people don't think about the one area of their lives where they should certainly not try to save money…disability insurance. No one really wants to think about actually needing disability insurance. After all, that would mean you're injured or sick and unable to meet your responsibilities. The reasons you need disability insurance are practically limitless. What steps can you take to protect yourself?

Think Ahead

Don't wait until it's needed. Lying in a hospital bed recovering from surgery is no time to be worrying about paying bills. Talk to your insurance agent ahead of time and concentrate on getting better. Your family needs you.

Is Your Problem a Preexisting Condition?

Getting medical disability coverage after you need it can be tough, maybe even impossible. At the very least it will be expensive. Taking steps to protect yourself before you actually need the help is not only financially imperative; it's the intelligent thing to do.

Don't Become a Statistic

To paraphrase an old saying, there are lies, very bad lies, and then there are statistics. Some stats claim that more than 1/3 of all Americans aged 35 to 65 will need financial help due to a disability sometime during their working career. Some people are skeptical, claiming the statistics are false or misleading. Why take the chance? If even a portion of the claim is true, do you want to be one of the 33 percent that need financial help when you're disabled, and due to skepticism are unable to meet your financial needs? Better safe than sorry, right?

Peace of Mind

If for no other reason than to save yourself the hassle of worry and stress over wondering if your financial responsibilities will be met, make sure you're properly insured. Talk to your insurance carrier about your potential needs. Save the stress for the next putt you're lining up while your friends are looking on or the missed field goal that sends the game into overtime instead of chalking up another win for your favorite football team.

Long-Term or Short-Term?

The variety of disability options are numerous and confusing. Some policies kick in immediately; others don't take effect until a period of time passes. Certain policies pay a large percentage of your actual income while others cover much less. Researching the options is the intelligent thing to do, and you'll be glad you did should the occasion arise when you actually have to make use of the policy. Of course, avoiding the need is recommended!