Families survive financially in today’s society by earning an income and saving. Accordingly, income is a tool for maintaining a household and building wealth. Without income, savings will be depleted and the household and the wealth will disappear. This is increasingly common as foreclosures and bankruptcies rise each year.
If you were suddenly unable to work, your household expenses would not cease. Your mortgage, taxes, utility bills, and grocery costs will deplete a savings in no time. In many cases, savings simply is not enough as nearly half of foreclosures are due to disability. Insurance coverage is available to replace your income. This is often called disability insurance and it is provides coverage in the event that an illness or injury prevents you from working.
The risks of disability are real. Many people assume that a disability cannot happen to them, but disabilities can take many forms. Auto accidents, household accidents, diseases, and illnesses occur every day across the country and the potential exists for everyone. A disability income insurance plan is extremely important for the main breadwinner in the household today as any one of the aforementioned circumstances can occur at any time and can result in full or partial disability.
When shopping for disability income insurance products, carefully examine the companies you are comparing. If you work in a specialty field or high-income career, you may want to focus your efforts on companies that specialize in your area of expertise. Many of these companies maintain plans that were designed with the help of professionals just like you with similar needs.
There are government funded disability programs such as Social Security, but these plans require a total disability and the income replacement is nominal. A private insurer will be able to provide many more options for disability insurance. These plans are often portable, moving with you when you change jobs.
Many employers offer disability income insurance plans with group rates through an insurer. These plans are often suitable, but it pays to do some research of your own before signing up with the company sponsored plan. Plans available to the public offer may desirable features including stable rates, guaranteed renewals, cost of living adjustments, guaranteed insurability options for the future, and a social security rider that will pay additional benefits if you do not qualify to receive social security benefits.
It is recommended that you compare plans from at lease 3 different insurance companies when shopping for disability income insurance. Make sure that you compare the availability of the features noted above as well as any additional costs and income loss requirements of the plan.