Disability Insurance: Who Needs It?

Looking for a crystal-clear answer dictating whether or not you should purchase disability insurance? Here it is (drumroll please). If you work 30+ hours weekly and depend on your paycheck, you need a policy. Read below as we answer additional questions to explain why thousands of people each year are thankful they opted for the coverage.

What is disability insurance, exactly? Injured in a car accident? Diagnosed with cancer? Disability insurance provides income replacement benefits that help pay bills so that you can direct your energy toward what’s really important – recovery. Individuals who suffer a disability but don’t have a disability insurance policy will likely have to use their savings/investments to continue to afford monthly expenses. This puts a huge amount of stress on the individual as well as their family.

How do I know if I’m qualified to receive disability insurance? Policy limits are determined based on your current income, and you must be actively at work for a minimum of 30 hours each week to qualify.

Do I really need disability insurance if my occupation is not hazardous? Absolutely. More people are sidelined each year due to illness than to accidents. Claims statistics show that 80% of claims benefits have been paid due to an illness. Disability insurance doesn’t just protect your livelihood if you’re injured while on the job (be careful pouring that hot coffee, by the way). It protects you outside of work.

How do I know how much to purchase? Some employers provide their workforce with disability insurance. However, even if your employer provides a policy, the limits may not be adequate to cover expenses. Be aware of what is already offered to you before you call a disability insurance advisor to ask about insuring for gaps of coverage. Filling the gaps of coverage from your group policy with a supplemental individual disability policy can make a huge difference.

How affordable is disability insurance? Online tools such as the one found atprincipal.com/calculatemyneed give you a general view of how much coverage is necessary and the corresponding costs involved. Policies are often flexible, and there are selections for nearly any budget. It’s imperative that you speak with an advisor who can access different policies and options for you.

The bottom line is this: We have to expect the unexpected. There are too many stories about random diagnoses and accidents for us to ignore them; the news reports such tragedies every day. Most individuals insure their home, car, and boat (and even their cell phones) but then forget to insure the proverbial ‘golden egg’ – their paycheck.  

Contact disability insurance advisor Abbey Bowersox, CLU at 727-522-7777 ext. 150 and start a discussion that ends with coverage. Should illness or injury occur, your income will be protected – and hopefully the healing can then begin.