The need for disability insurance is influenced by several factors, which may make it look complicated. However, there are multiple positive reasons why you must have a disability insurance policy as a safety net in case you get ill or injured and are unable to earn income.
Here is what you should know about disability coverage.
Inability to Work
Nobody likes to predict illness or injury, but since it is inevitable, enrolling in a disability insurance policy offers financial protection when you are unable to work. If you expect to be out of work for less than a year, you will be unable to tap into social security disability benefits. Studies show most long-term employment absences are caused more by illnesses than accidents.
A disability policy is particularly helpful if you have family members who depend on your income. During your downtime, you will be paid a portion of your income, which should be enough to cover normal living expenses. Over 70 percent of consumer expenses consist of basic expenses such as housing, food, energy, and healthcare.
Better Than No Coverage
When your budget is tight, you can still buy a small amount of disability insurance so that you’re covered for basic expenses, including rent and food, which is better than having no coverage. It’s possible to get an affordable plan that initially costs about $25 per month and pays a benefit of $1,000 per month. These funds can be helpful during the current pandemic, which is expected to continue for an uncertain period of time.
Any Age Can Benefit
The need for disability insurance does not depend on your age at all. You can get the best deals even when you’re young. Studies indicate nearly a quarter of people who are currently 20 years old will someday find themselves out of work for at least a year before retirement. About one in four of the previously mentioned age group is expected to become disabled at some point in their lives. Since the future physical condition is unpredictable, it’s helpful to have a disability policy in place to avoid financial pressure.
Find out If You’re Already Covered
Some people might have pre-existing disability coverage even without knowing it. If you’re seeking disability coverage, you must first check with your company and find out what’s offered in your benefits package. Keep in mind that group benefits have limitations and might not meet all of your concerns. So even if your employer provides partial coverage, you may want to supplement it with your own policy.
Work with a Reputable Insurer
Since disability insurance is part of long-term planning, you should make sure the insurance agency you choose has a strong reputation. You need a company that has been in business for years and hires well-trained agents who can answer all your questions. The insurer should be licensed to operate in your state and must have an experienced team of professionals.
Planning for the future always helps people in the long run. If you need disability insurance, talk to the professionals at Lou Aggetta Insurance Services in Pleasant Hill, California. Our experts are ready to answer your questions about how a policy can protect your finances. Contact us today to get started!