You’ve probably insured your home, your car, maybe even your life. Leaving your insurance needs at these three simply isn’t enough, because you’ve failed to protect your greatest asset: your income. Unfortunately, especially in this challenging economy more people than ever are living paycheck to paycheck. Many haven’t accumulated the necessary savings to get their family through one month, let alone several.
The good news is that there’s something to address this concern- disability income insurance. Also known as DI, this insurance kicks in and pays a portion of your income if you become disabled for any reason. For a minimal cost, you can protect your earnings in the event of an accident. Disability statistics are only climbing- according to the LIFE Foundation, people today face a 1 in 4 risk of becoming disabled during their working years.
The way that disability income insurance works is that after a certain elimination period, which is typically 90 days, a partial income benefit will kick in to help support you and your family in the event that you are missing work due to a disability. Your policy can be customized to protect up to a certain portion of your income and your rate class depends on your health as well as your occupation. Some insurance carriers even offer the opportunity to reduce the elimination period for lack of claims over certain periods of time, which can come in handy for younger workers who don’t face any disability claims until they are older.
Disability income insurance fills a critical need in your insurance portfolio by protecting your income. In the event of an accident, you don’t need the added pressure of worrying about how to make ends meet. You need to instead be focused on your recovery. Having a disability insurance policy in place will allow you to get better and be able to draw a certain amount of your salary while you’re out of work. Consider setting up a meeting with your insurance agent today to discuss your needs.