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The case for disability insurance

The case for disability insurance

January 15, 2024

Without receiving your paycheck, how long would you be able to make your mortgage/rent payment, buy groceries or pay your bills without feeling tight about money? If you’re like most people, it wouldn’t be long: 7 in 10 working Americans couldn’t make it a month before financial difficulties arise, and one in four would have problems almost immediately. The chances are that three in ten workers will suffer a disability and be unable to work for a significant period of time. Accidents are usually not the reason. Back injuries, cancer, heart disease, and other illness cause the majority of long term absences. The average claim lasts 34.6 months.

That’s where disability insurance comes in. Think of it as insurance for your paycheck. It ensures that if you are unable to work because of illness or injury, you will continue to receive an income until you’re able to return to work.

You insure your home, car and other valuable possessions, so why wouldn’t you also protect what pays for all those things—your paycheck.

Simply put, if you have a job, you probably should look into disability insurance. The possibility of a disabling illness or injury may seem slight, but statistics say otherwise.

Most of us have some type of personal debt, such as a mortgage or credit card bills. Would you be able to maintain your standard of living if you were too ill or injured to work for a long time? A disabling injury or illness could lead to medical bills, modifications to your car or home or other unforeseen costs that can be expensive.

You are likely covered by Social Security Disability Insurance (SSDI). Habput half the workers collecting from the program are under 50 years of age and the average benefit is $978 a month.  Did I mention that less than half of those that apply get approved?

A disability can change everything in the blink of an eye. If you work in a high-risk field and you don’t currently have disability insurance through your job, consider collecting a few quotes from an independent insurance agent. You might be surprised at how little it costs to protect your income and lifestyle.

For all these reasons, almost anyone who works—whether they’re single, married, with children or without—should consider disability insurance.