Insurance is used to help people cover high costs often incases of unplanned emergencies that can negatively impact your future finances. These life events are often unplanned with some special circumstances that leave you physically disabled and unable to make money to take care of needed medical services.
If there is a medical emergency and you require financial assistance, disability insurance can help you financially while you heal lifting one less worry to focus on recovery. Disability insurance replaces a portion of your income if you’re sick or injured and unable to work.
Your biggest asset isn’t in the valuables that you possess but is the source of income that allows you to pay for those things. A survey by Life Happens indicates that most people are unable to make it for a month without a paycheck before incurring financial difficulties.
The best candidates for disability insurance are people working to depend on their paycheck to meet their financial means. There should be more people considering disability insurance with many misconceptions of why people don’t think they need this coverage.
The biggest misconception is people thinking “it won’t happen to me” but statistics state there is a 3 in 10 chance of suffering from a disability that will keep you out of work for 90 days or more at any point in your career. Another misconception is thinking they can rely on government benefits, but a majority of long-term disabilities are not work-related that won’t technically qualify as worker’s compensation. Social security benefits only pay an average of $1,100 per month.
Workers also believe that employers will offer disability coverage but 70% of private employers don’t offer long-term disability insurance. It’s best to research disability insurance plans to find what is best for your needs and budget to ensure you have a stable emergency fund if you have a major medical accident.