What Is Disability Insurance?

Some people may be surprised to learn that disabilitychance of being disabled before reaching retirement
insurance is every bit as important as life insurance.age. According to their numbers, 30% of the populace
Many times it can be even more important than lifeis susceptible to needing some form of income
insurance. This article examines some of the issuesprotection within their lifetime. That is a staggering
concerning disability insurance and how it can helpnumber if you think about it.
protect your lifestyle in the event of a serious illness orWhile disability insurance is important it is also more
injury.expensive than life insurance. This only makes sense
Disability insurance is used for the protection of youras it is expected that the insurance company will have
future income. It is the best way to protect yourself into pay out more in disability claims than it will in life
the event that you are unable to earn a living due toinsurance claims.
poor health or serious injury. As with most types ofConsumers should understand that disability insurance
insurance, disability insurance comes in different forms.is not the same as health insurance, which is used to
One of the reasons that disability insurance ishelp pay the cost of medical expenses. It is somewhat
considered to be just as important as life insurance isironic that medical insurance can save your life and
the fact that you are still alive when disability insuranceimprove your health but you might still find yourself
takes effect. Life insurance, of course, only takeshomeless if you are disabled and cannot earn a living.
effect once you are passed on. Life insurance willDisability insurance protects you from that unpleasant
deliver a sum of money to your beneficiaries that theyreality.
can use as they see fit. If you are injured or ill to theIndividuals who are single or have no family members
point that you cannot work and earn a living, where willoften decide to by-pass life insurance because they
the money come from to meet your financialhave no one to benefit from the insurance. In other
obligations?words, they have no beneficiaries. Those same
In a very broad sense, disability insurance can come inindividuals, however, should not by-pass disability
three ways. Your employer may have you coveredinsurance because, in essence, they are the ones who
through a group plan at work. The Social Securitywill benefit should they become disabled and unable to
Administration may be able to provide some relief ifwork. It only makes sense that even single people who
you meet their requirements. Lastly, you can purchaseare unable to earn a living will still need some form of
private disability insurance from an insurance carrierfinancial assistance in order to live.
the same way that your purchase life insurance.Anyone who is dependent on their income to pay their
An interesting fact concerning disability comes frombills should seriously consider adding disability insurance
the Social Security Administration. Their studies claimto their financial planning portfolio.
that a 20-year old working person has a 3 in 10