Disability, in any form, can be traumatic for people as they can’t work and earn when they are ill or injured. However, disability insurance protects your income and family during the period when you are disabled. Disability insurance is quite similar to, but different from life insurance. As life insurance doesn’t cover disabilities, you should consider investing in disability coverage.
If you have disability insurance coverage, it protects your most valuable asset and the ability to earn money. Want to know how disability insurance works, what it covers, if you need it, which conditions qualify you for a payout, and the significant benefits of an individual policy? South Star Wealth Management has all the details on why you should get disability income insurance. Keep reading to find out.
How Does Disability Income Insurance Work?
It is a contract between an insurer and policyholder where the insurer pays a monthly benefit in exchange for paying premiums if you are disabled and can’t earn money. Disability income insurance replaces a part of the monthly salary when you are disabled to work because of severe illness and injuries.
This insurance helps you to pay bills and groceries, and covers expenses to support you in the critical phase. Depending on the premium payer, you may not even need to pay tax on coverage. Before purchasing a policy, consider the monthly premium, inclusions, monthly benefits, and payout duration.
What Does Disability Income Insurance Cover?
Disability income insurance covers injuries and illnesses that restrict your capabilities to work every day. The insurance covers almost all types of illnesses that limit you from working. Such illnesses are stroke, heart disease, depression, cancer, arthritis, back pain, poisoning, physical injuries, and musculoskeletal disorders.
Besides these health issues, the insurance covers pregnancy, which is neither injury nor illness. Your policy will also cover any preexisting health condition.
Benefits of Getting Disability Income Insurance
Disability insurance protects your income and replaces a percentage of earnings when you can’t work due to severe injuries and illness. Find below the beneficial reasons to get this income insurance:
1. Save Money for Critical Times
People tend to ignore disability risks and believe nothing significant will happen if they are ill and injured. As you grow older, you are more likely to fall sick or get injured. Life is unpredictable; thus, you can’t predict when you will be hurt or ill.
After spending a long day at a beach, you may get heatstroke that can gradually cause paralysis. A snowstorm can keep you in the cold for hours, and you may have cramped limbs. A sudden earthquake can occur, and a brick may fall on your head, causing critical injuries. A big accident can turn your life upside down, and you may not be able to leave your bed for months.
The Covid-19 pandemic has caused issues for many people that stopped them from going to their offices regularly. For instance, if you are a chef and lose your sense of taste and smell, you won’t be able to prepare delicious food. Only money can help you survive the most challenging days when you can’t work. Disability income insurance enables you to save money and live peacefully when you aren’t working.
2. Financially Support Your Family
Imagine how tough it is to survive without a paycheck for a year! Even if you stay without earnings for a year, what about your family? Who will provide them when you are unemployed? Life insurance helps to provide for your family after you pass away. Disability income insurance comes to your and your family’s rescue during the jobless days.
If you lose a primary wage earner, you and your family will face a financial crisis for an uncertain period. Living is so expensive that every penny counts. Thus, financial stability is crucial if you want to fulfill your basic requirements. Any minor event can cause a significant financial crunch. So, you just can’t afford to put your family members in a financial crisis when you can’t work because of any disability.
3. Invest Less Yet Get More
As you need to pay bills, rent, car maintenance, and vacations, you may feel investing in insurance is a burden. However, you get a high ROI and benefits from investing in a disability income insurance policy as it costs only 1% of your earnings. You also never have the risk of having no coverage at all.
If you stay disabled for a long time and can’t earn money, the insurance can cover a considerable percentage of your zone income. Thus, you get lucrative returns by investing in an insurance policy.
Do You Need Disability Insurance?
We all need to work to earn money and fulfill our basic requirements. If you suddenly get severe injuries or fall ill, you can’t work for months, which will empty your bank account. Surviving with a zero-balance bank account can make your life horrible.
Thus, you should invest in disability income insurance, so you don’t have a financial crisis. Every working person in this world should inquire about a disability income insurance policy. It gives you the required financial protection during the most challenging phase of your life. When you don’t earn money, you don’t need to think about your family’s financial condition consistently. Even though you lose the ability to work for a certain period, you get the financial support to live well.
Hopefully, this post helped you to understand why you should get a disability income insurance for you and your family. South Star Wealth Management, a financial organization in Victoria, Texas, understands that people face different challenges and accidents before retirement. We can help to solve your economic issues so you have a stable income until you die.
Our financial experts can understand your requirements regarding retirement, college savings, or estate strategy. We know your precise needs and can personalize services depending on your wants, financial goals, and objectives. We can help solve your current and future economic challenges, and are always available to help in all phases of life. Contact us today!