Disability Insurance Who Needs It
Ask most people to think about their most valuable asset, and they'll mention their home, their car, their jewelry, or other possessions. But for most of us, our most valuable possession isn't anything of those things. It's our ability to earn a living. And just as you would insure your car, your home, and other valuable possessions, you need to insure yourself in case you are no longer able to work. That's what disability insurance does. It provides a source of replacement income if you're unable to work due to an illness or accident.
If becoming disabled may seem unlikely, the odds may surprise you. Roughly 3 in 10 Americans will suffer a disability lasting 3 months or longer before the age of 65. Nearly 1 in 5 Americans will be disabled for one year or more during their working years.
For many, a sudden interruption of income could have serious financial consequences. Most of us have some kind of personal debt, typically a mortgage or credit card bills. Would you be able to maintain your standard of living if you were too ill or injured to work for an extended length of time? Half of all home foreclosures in the United States result from disability as do an alarming number of personal bankruptcies. Simply put, if you have a job you likely need disability insurance.
The other thing to keep in mind is that an accident or illness that keeps you out of work for a period of time can be very costly. That's because people who become disabled not only need to continue providing for loved ones, but for themselves as well. A disabling injury or illness could lead to medical bills, modifications to your car or home, or other unforeseen needs that can be quite expensive. For all these reasons, almost anyone who works – whether they're single, married, with children or without – should consider disability insurance.