Disability Insurance: Why You Need It


Disability Insurance: Why You Need It on avanteinsurance.com

What would you do if you weren’t able to go back to work for several months?

By the time you reach the age of 35, you have a one-in-three chance of becoming disabled for more than 90 days during the rest of your working life. That’s a stat no one should ignore. And while you may be thinking that you’re young and healthy, the reality is that accidents happen and no one is immune to them. For many folks, the term disability is something they feel doesn’t apply to them. But if you think about what would happen if you were injured or became ill and couldn’t work for a significant length of time, you may reconsider. No matter how old you are, disability insurance is something everyone needs.

What is disability insurance?

Disability insurance was created to protect your financial well-being in the event that you are forced to lose wages due to an injury or illness. With a disability policy, you’ll receive benefits to help you continue to paying bills and managing life. Many companies offer disability insurance to their employees, but if yours doesn’t, then it’s important to take steps on your own to ensure that you’re covered. There are two different types of disability coverage:

Short Term Disability

Just like its name suggests, this type of disability insurance will provide coverage for a limited amount of time. There’s usually a short waiting period after you become ill or injured, then you begin receiving benefits for a length of time specified in your policy. Short Term Disability policies often have a specified maximum coverage amount which means that you will receive payments until you reach the time limit, hit the maximum amount, or you recover from your illness or injury. Some of the events that are covered include:

• Injury or illness that did not occur on the job (covered by worker’s compensation)

• Pregnancy

• Surgeries

Long Term Disability

This type of policy differs from short term in a few ways. The first is that the waiting period to begin receiving benefits is often longer (up to 90 days). And unlike short term disability, pregnancy is not covered. Long term disability provides much-needed benefits to you when you have suffered a debilitating injury or illness that prevents you from working for an extended period of time or, in some cases, for the rest of your life. Depending on the policy specifications, coverage can be for several years, until reaching retirement age, until recovery, or for the rest of your life.

Some of the events that Long Term Disability covers include:

• Back injuries

• Osteoarthritis

• Cancer

• Heart Attacks, coronary artery disease

• Mental illness

Why you need disability coverage

For most folks, not being able to work for long periods of time means losing viable income that’s essential for survival. Without a regular paycheck, not many people would be able to afford a mortgage, food, utilities, and car payments. And while many younger workers may believe that disability insurance is something reserved for older generations, the opposite is actually true. The younger you are, the less likely it is that you’ve amassed a large amount of savings or assets that you could turn to in the event that you’re unable to work. Add to that the fact that if you are injured or become ill, you may have additional expenses related to your condition.

Disability insurance can give you the peace of mind that if you become unable to work because of injury or illness, you will still have a regular income supporting you. Find out more about the different types of disability policies available by getting in touch with us today.