As an employee working in a corporate organization or as individual, you may have got health insurance and (or) life insurance policy, meaning that you and your family are covered for medical expenses, and in the event of the unexpected your family will get compensation. The question is, is that enough insurance for all you need? The answer is real “NO”.
Suppose you suffer an injury or long-lasting illness that makes it impossible for you to work, what happens? While your health insurance coverage will take care of your medical expenses, and your life insurance provide for your family, you will be facing debt and potential financial instability if you have no way of replacing your income while you are disabled.
Disability insurance is one of those things that no one ever thinks they need. But you need to know that you could still pay your bills if you were to become temporarily or permanently disabled.
Why you need disability insurance
One can never anticipate when tragedy will strike. Whether it is a car or household accident or a diagnosis of heart disease or a herniated disc, unanticipated misfortunes are the reasons it makes sense to have disability insurance. This type of insurance replaces a portion of your income if injury or illness renders you unable to work
Premiums for disability coverage vary based on your age, income, the type of work you do, and the policy provisions you choose. In general, the greater the coverage, the higher the premium. Here is what you need to know to get sufficient coverage at an affordable cost, according to the American Institute of Certified Public Accountants
Disability insurance typically pays you 60 to 80 percent of your income should you become disabled. This coverage is designed to provide you with adequate income to cover your basic needs if you cannot work.
Term of benefits
You may choose disability coverage that pays you for a year, two years, five years, until age 60, or even for life. The longer the benefit period you select, the higher the premium you can expect to pay.