Disability insurance provides an income source for those left unable to work or earn money due to a disability. Various workplaces offer this insurance as part of their employer benefits, but not all workplaces do. If this is the case, i.e., your employer does not provide disability insurance, you can choose to purchase it yourself.
However, who needs this type of insurance? Is it those who already have a disability or everyday people? In an ideal world, we would all have disability insurance. Shocking, we know.
Unable to work or earn money
Regardless of your age, whether you’re eighteen or sixty-five, if you left unable to work or earn money due to a disability, you could be in severe financial trouble. Think of disability insurance as a safety net to protect you from the worst-case scenario.
Whilst we’re not trying to fear monger you into purchasing insurance, it is something to seriously consider investing in. For example, according to the world health organization, approximately 15% of the world’s population lives with some form of disability. Furthermore, a 2018 study by the U.S. centers for disease control and prevention estimates one in four people to suffer from a severe disability before reaching retirement age.
If these figures are accurate, that provides you with a 25% chance of having to stop working before reaching retirement age. That could seriously hurt your pension fund and perform a U-turn on your lifestyle.
Disability insurance is not for those who are disabled
Contrary to popular belief, disability insurance is rarely for those who are already disabled. Instead, this is to protect against future disability, whether it’s on the cards or not. If you have a health report that suggests you may have a disability in the future, your insurance will likely cost more to purchase.
For this reason, it’s worth purchasing sooner rather than later, whilst your healthier, active, and young. This lowers the cost of the insurance price and protects you, your family, and your earnings.
To find out more about the professional insurance plans, disability insurance, and the individual packages available, click here.