If you’re like most people, you don’t think you need disability insurance.
Life insurance, sure—this has been ingrained into us by our parents, financial advisors, insurance marketers, and your benefits specialist at work.
But what if I told you that disability insurance is just as important, possibly more important, than life insurance? The reason is simple—if you pass away your income is gone and so is your “expense” of living. If you become permanently disabled, your income is gone but you still are an expense to your family. You still require food, shelter, clothing, etc. (maybe even some type of ongoing medical care).
While term life insurance tends to be straight-forward, disability insurance is more complex.
Here are three things to consider when shopping for disability insurance:
1. Coverage available at work
The first place to check is your employer’s benefits department. Some employers offer both short-term and long-term disability coverage. What we are suggesting is long-term disability that will replace at least 70% of your income until age 65. If you have it at work, great! If not, we can help you find a policy from a credible insurance company.
2. Occupation
Your occupation will affect how much you pay for disability insurance. If you work a dangerous job, you will pay more because of the risk of injury. However, just because you work a desk job doesn’t mean you shouldn’t get insurance! Illness, not accidents, cause 90% of disabilities in the United States. Furthermore, only 5% of disability claims are work-related.
3. Riders
Insurance companies love selling riders on insurance policies. A rider is a provision that adds an additional “benefit” to the insured—usually at an additional cost. When you get quotes from an insurance company, they often include a bunch of riders (sometimes upwards of 8-10!). Not only is this confusing, it also increases your cost. Some riders are worth it, while some should be avoided. By working with us, we’ll help determine which riders you should get, and we’ll educate you on what they all mean!
Disability insurance is a big deal. Because it’s so important, we want to help you! Fill out the form below, and we will contact you soon.
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