Many of us buy insurances for car, home and our assets, but most of us at the same time don’t care of getting insurance for ourselves. It’s true that the cost of fixing your house and car are expensive. However, it will not be as worse as losing your income due to a disability. In the long run, that can add up to many debts and your situation will get devastated. Although you may think that the possibility to become disabled from work is low because your job is not involving any dangerous activities. However, statistics show that:
- 95% of accident happened was not from workplace
- 1 in 3 people, in average, will be disable for 90 days or longer, at least once before age 65
- The average length of a disability usually last for over 90 days to almost 3 years.
Disability insurance is designed to provide you a partial income replacement, from 50% to 75%, if you happen to be disabled and unable to work. By this income replacement, your family financial is secured. You will still be able to pay for monthly bills, mortgage, or your kids’ expenses. Depending on a definition of policy you choose, the period for receiving your benefit is different.
It’s also true that your employer may have disability insurance for you. But, what happen if you change your job, or if you are self-employed? Once you have your own disability insurance, it will go with you anywhere. One more thing you should be aware of disability insurance is that the waiting period. If you become disability, you can’t receive your benefit immediately. You have to wait for generally 30 days to 120 days to start receiving your benefit.