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Typically when we think of protecting our assets
we think of our home or car. Another area of insurance that we are keenly aware
of is insurance to cover medical expenses. However, we frequently forget; what
allows us to afford these items is our earning potential. This is where
disability insurance becomes so critical.
If you are the primary wage earner for yourself and your household, imagine for
a minute what life would be like if that income was no longer there. This
scenario is much worse than being laid off or having temporarily suffered a loss
of job where there is a strong conviction to find alternative work. All of your
monthly bills from groceries to mortgage payments would still be due, month
after month. A disability that prevents the income that you have come to rely on
could be a serious financial threat to your family. It will immediately
jeopardize your feature and will quickly threaten your present lifestyle.
Disability insurance will protect you and your family from this potentially
frightening situation.
Disability insurance can replace a portion of your income when you are unable to
work because of injury or illness. There are two major types of disability
coverage:
- Long term disability helps replace income for an
extended period of time, usually ending after five years or when the disabled
person turns 65. Some people have long term disability insurance provided by
their employers; others purchase it individually.
- Short term disability provides an income for the
early part of a disability. A policy may pay benefits for two weeks up to two
years. Short term disability is often included as part of an employee benefits
package.
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