When we’re healthy and able-bodied, we don’t think about the possibility of needing disability coverage. Yet, one in four people will be out for an average of one year of work between the ages of 20 and 67 due to a disability.
Disability insurance helps to replace at least a portion of your income that you can’t make while disabled. Should you buy disability insurance? Is this more pressing when you have one or more pre-existing conditions?
Paying into an insurance plan can seem like a waste of money when you don’t actively need that insurance. Yet, insurance is always designed to protect us from future events, and disability insurance is no exception.
Read on to learn more about whether or not buying disability insurance is the right move.
What Is Disability Insurance?
As we mentioned already, disability insurance is designed to give you at least a portion of your lost income. You become eligible to use it if a disability limits your ability to work or prevents you from working.
You can purchase short-term disability insurance, which tends to pay out for a few months or up to one year. You can also purchase long-term disability insurance, which tends to pay out until the disability is no longer prohibiting your ability to work full time.
What About Social Security Disability?
Many people overlook the importance of disability insurance. This is in large part because we assume that if something happens to us, we can rely on social security disability.
The truth is that only a fraction of disabled adults gains access to social security disability. This comes down to factors such as your date last insured, your current income, and your ability to navigate a confusing system.
In other words, your only surefire way to get coverage during a period of disability is to buy disability insurance.
However, in Australia this changes. Australia has the NDIS (National Disability Insurance Scheme) which funds the costs that come with disability, but Australians can still get personal disability insurance. However, Selectability NDIS Cairns tells us that a person can only make a claim under the NDIS or their private disability insurance, not both. So this needs to be consider when deciding on a insurance plan and their NDIS plan, so the individual is making the most of both.
Why Buy Disability Insurance Now?
People often assume that they will be able to work consistently between now and retirement with no disruptions. When they think of the disabilities that could disrupt that ability, they think about the extremes.
The truth is that most Americans are at risk of at least one condition that could become disabling. Things like cancer, heart attacks, or diabetes could all lead to missed work. Even back injuries could make working, whether that means performing physical labor or sitting at a desk, difficult to navigate.
In other words, it is likely that a disability will impact your ability to work. How long could you go without your paycheck? Disability insurance keeps you from having to ask that question.
Protect Your Future Self From the Unforeseen
It doesn’t occur to most young and healthy workers to buy disability insurance. Yet, doing so could protect your future self from an unforeseen illness, disorder, or injury.
Looking for more ways to protect yourself from a health crisis or issue? Take a look around for additional health content.