What Is Disability Insurance

What Is Disability Insurance

What is​ Disability Insurance?
Some people may be surprised to​ learn that disability insurance is​ every bit as​ important as​ life insurance. Many times it​ can be even more important than life insurance. This article examines some of​ the​ issues concerning disability insurance and how it​ can help protect your lifestyle in​ the​ event of​ a​ serious illness or​ injury.
Disability insurance is​ used for the​ protection of​ your future income. it​ is​ the​ best way to​ protect yourself in​ the​ event that you​ are unable to​ earn a​ living due to​ poor health or​ serious injury. as​ with most types of​ insurance,​ disability insurance comes in​ different forms.
One of​ the​ reasons that disability insurance is​ considered to​ be just as​ important as​ life insurance is​ the​ fact that you​ are still alive when disability insurance takes effect. Life insurance,​ of​ course,​ only takes effect once you​ are passed on. Life insurance will deliver a​ sum of​ money to​ your beneficiaries that they can use as​ they see fit. if​ you​ are injured or​ ill to​ the​ point that you​ cannot work and earn a​ living,​ where will the​ money come from to​ meet your financial obligations?
In a​ very broad sense,​ disability insurance can come in​ three ways. Your employer may have you​ covered through a​ group plan at​ work. the​ Social Security Administration may be able to​ provide some relief if​ you​ meet their requirements. Lastly,​ you​ can purchase private disability insurance from an insurance carrier the​ same way that your purchase life insurance.
An interesting fact concerning disability comes from the​ Social Security Administration. Their studies claim that a​ 20year old working person has a​ 3 in​ 10 chance of​ being disabled before reaching retirement age. According to​ their numbers,​ 30% of​ the​ populace is​ susceptible to​ needing some form of​ income protection within their lifetime. That is​ a​ staggering number if​ you​ think about it.
While disability insurance is​ important it​ is​ also more expensive than life insurance. This only makes sense as​ it​ is​ expected that the​ insurance company will have to​ pay out more in​ disability claims than it​ will in​ life insurance claims.
Consumers should understand that disability insurance is​ not the​ same as​ health insurance,​ which is​ used to​ help pay the​ cost of​ medical expenses. it​ is​ somewhat ironic that medical insurance can save your life and improve your health but you​ might still find yourself homeless if​ you​ are disabled and cannot earn a​ living. Disability insurance protects you​ from that unpleasant reality.
Individuals who are single or​ have no family members often decide to​ bypass life insurance because they have no one to​ benefit from the​ insurance. in​ other words,​ they have no beneficiaries. Those same individuals,​ however,​ should not bypass disability insurance because,​ in​ essence,​ they are the​ ones who will benefit should they become disabled and unable to​ work. it​ only makes sense that even single people who are unable to​ earn a​ living will still need some form of​ financial assistance in​ order to​ live.
Anyone who is​ dependent on​ their income to​ pay their bills should seriously consider adding disability insurance to​ their financial planning portfolio.

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