When given the choice of whether or not to buy disability insurance, many people say "no" without fully understanding what that means. Disability insurance policies are not as common or talked about as life or health insurance policies, which is the main reason why so few people buy enough of them. This is why many people still don't know what disability insurance can do for them.
Disability insurance has a pretty simple structure. If you become disabled in some way and can't do the job you were trained for and good at, your insurance will pay you a replacement amount of income that won't be taxed. Disabilities come in many different shapes and sizes. If you can't work because of vertigo, obesity, or any other condition, you might be able to file a disability insurance claim.
When people hear the word "disability," they often think of hospitals and how much it costs to go to the doctor. Even if you can't work because of an injury or illness, you may need a lot of care to get better. Having good health insurance is an important part of getting through this kind of situation with money left in your bank account. But it's easy to forget that if you're in this kind of situation, medical costs are only one part of the financial picture. If you can't work because of a health problem, it can be hard to keep your house, car, and other assets without the help that a disability insurance claim can give. Depending on the type of policy you have, the amount of money you will get to replace your income will be different. However, most people who have disability insurance are covered for about half of their normal gross income. When it's hard to get better from an injury or illness, this kind of help can make the difference between being able to make ends meet and going deep into debt.
Even though no one likes to plan for the worst, taking some time to figure out how you would handle your finances if you became disabled could help you make some important plans. This kind of planning ahead can make a hard time much easier to get through. Many people find that knowing they are ready for the worst makes them feel less stressed. If you want peace of mind as well as the other benefits of disability insurance, you should think about getting it.
