Disability Insurance
When considering your assets, you probably think of things like your home, car, or retirement accounts. But one of your most valuable assets is your ability to earn a living. For most Americans, losing the ability to work due to illness or injury would make it difficult to meet monthly obligations.
Disability income insurance is designed to replace a significant portion of your income if you can’t work because of an injury or illness. Often called “paycheck protection,” this coverage, combined with life insurance, helps ensure your family can maintain their lifestyle and protect valuable assets even in the face of the unexpected.
Why Do I Need Disability Insurance?
Many people underestimate their risk of becoming disabled, yet the U.S. Social Security Administration reports that one in five Americans—around 56 million—currently live with a physical or mental disability. Additionally, roughly one in four of today’s 20-year-olds is expected to experience a disability before reaching retirement.
Without a solid disability insurance plan, families may face serious financial challenges, especially if household bills or a mortgage depend on your income. Social Security Disability benefits can be difficult to obtain because the program requires you to be unable to work in any occupation for which you are qualified. In contrast, disability insurance purchased through a professional typically uses an “own occupation” definition, making it easier to qualify and ensuring protection if you cannot perform your specific job.
How Does Disability Insurance Work?
You apply for coverage and maintain the policy with regular premium payments. Disability income insurance can be purchased on its own or added to a life insurance policy as a rider. If you become disabled, benefits begin after the policy’s elimination period. As long as you remain unable to work, the policy pays the monthly benefit for the duration outlined in the contract. These payments help replace lost income so you can continue covering essential expenses like your mortgage and other bills.