Nobody knows tomorrow, and it’s common to get into situations where you need financial help. Many physically challenged individuals will benefit from disability insurance. This insurance type acts as a shield for your financial assets. A sick person and can’t work will enjoy owning disability insurance because they’re compensated a part of their paycheck monthly. So there’s always time to recover and get back to work. 

Disability insurance is agreed upon by an individual and an insurance company. You pay a certain amount monthly, which will help cover your bills when you’re too ill to be productive. The good thing about disability insurance is that you’re still able to afford groceries, pay your bills, provide for your loved ones, and more despite being without a job. Unfortunately, many people think disability insurance is not important, so they are more likely to dismiss this insurance type. Below are some things to note about it. 

How Does Disability Insurance Work?

Usually, disability insurance helps you smoothly replace a percentage of your income lost when you are unable to work. With this insurance type, you get the money that you would otherwise have gotten from your paycheck. 

What to expect in your policy 

  • Money paid for premium: every insurance type requires you to make monthly premium payments. This insurance is not different, so you need to pay every month. 
  • What’s the definition of disability here?: different companies have their own policies. For some, you still get monthly payment when you sustain an injury that stops you from working your normal job. However, if this injury allows you to work in other low-paid, you still get the insurance payment. With another company’s policy, you might not be allowed to earn the disability insurance money once you can work in another field. 
  • What amount do you get as benefits?: many policies allow you to take up to 60% of your regular paycheck home. So the amount you earned before your disability will determine how much you get from the policy. 
  • How long do you get benefits?: many companies work with an age limit, so you can keep getting this benefit for months or even years. 

What exactly does this policy cover?

Do you think of a wheelchair when you hear the word “disability”? Then you’re not alone. It is common to assume that disability must involve losing a limb or something more severe. However, disability insurance covers a lot more than that.  Some common disabilities that people often ignore include but not limited to: 

  • Depression 
  • Arthritis 
  • Stroke 
  • Back pain 
  • Cancer 
  • Diabetes 
  • Heart disease

This means that having a fractured rib and bruises isn’t the only reason to get disability insurance. In fact, anything that comes in your way of working properly can be considered a disability. 

 Why You Need Disability Insurance 

  1. Protect what’s important: having this insurance type enables you to earn a living. Of course, you can own houses or cars as an investment, but it also helps balance out your bills when you’re still earning money. 
  2. Meet your responsibilities: no matter how sick you are, the bills that come with adulthood won’t stop piling up. Disability insurance helps you keep up with family obligations and more. 
  3. Stable income: owning a stable financial stream means you can take better care of your kids and partner. So you don’t need to borrow money for basic stuff around your home. 
  4. Retirement savings: if you get sick and you need to use your insurance, this saves you from considering digging into your retirement savings. Disability insurance helps you fit into the community without feeling alienated.

If you’re considering disability insurance, think about what you can do if you can’t work for a long time. Will you be able to survive all the pressure with no stable source of income? It is smart to prepare for the worse because anything can happen to anyone. If you need to learn more about insurance, check more pages on our sites for detailed information to help with your decision.