The Benefits of Individual Disability Insurance
Individual disability insurance is one way in which people can prepare for their futures. Accidents happen – we all know this – and everyone in the world carries the potential to be on the receiving end of a crippling incident. If you are disabled before your retirement years, how will you support your family? And are you willing to run through all of your savings before you are able to go back to work?
Individual disability insurance is designed to replace between forty and sixty percent of your gross income (tax free) in the event of an unexpected injury or illness. Although it is typically meant to provide short-term coverage, there are individual disability insurance policies that will cover you for whatever the extent of your disability.
Many people consider individual disability insurance to be a waste of money. If you never become disabled, then the money wasn’t necessarily wisely spent. However, if you do become involved in an accident, or if you are suddenly ill, disability insurance will ensure a continuance in the quality of life to which you have grown accustomed. You will retain your savings, which can be used to pay for your child’s college or for other future expenses, and you don’t have to worry about your family’s suffering.
Further, disability insurance can give you peace of mind. In this world, we can never hope to forsee every possible circumstance, but disability insurance covers a wide variety of instances.
Individual disability insurance can also save you from the prospect of bankruptcy. According to the Norton Bankruptcy Advisor, 25% of the people who filed for bankruptcy in 2005 attributed their economic collapse to illness or injury. Had those people purchased an individual disability insurance policy, they would not have had to file for bankruptcy.
Preparation is the largest argument factor when it comes to disability insurance. Some people prefer to insure everything in their lives, while others choose to live by the seat of their pants. Whatever your case, disability insurance is something to consider not only for your benefit, but also for that of your family.
There are a number of ways to go about obtaining disability insurance. The most prudent method is to inquire about individual disability insurance with one of your current insurance providers. If the provider of your medical, dental, vision, home or automotive insurance also provides disability insurance, then you may be able to get a package rate. You can also go through your employer’s insurance company to receive added benefits.
In addition, there are a few federally run programs that offer disability insurance. Perform extensive research on the subject and choose the option that works for you.
