Why You Need Disability Insurance

Why do you need disability insurance? To protect your greatest financial asset. Here are some thoughts on this issue from the book The Net Worth Workout: A Powerful Program for a Lifetime of Financial Fitness (see my rating for details) :

That's why I strongly recommend that you have disability insurance. You have health insurance to take care of your body if it becomes sick; doesn't it make as much sense to take care of your income-earning power, if it should become "sick"? Over 65 percent of mortgages default because of a disability. We insure our homes, cars, artwork and jewelry, but most of us neglect our most important asset: our ability to earn a living!

For more of my thoughts on this issue, see Why I Buy Disability Insurance. Key thought:

During the course of your career, you are three and a half times more likely to be injured and need disability coverage than you are to die and need life insurance.

Yeah, it's pricey insurance, that's for sure. But think about it -- why is it pricey? Because it covers a hugely valuable asset (your income) and there's a decent chance (at least better than many other insurances you pay for) that you'll need it. These are just the reasons you shouldn't be without it.

Comments

[carolyn]

You are so very right on this subject.

[Minimum Wage]

I was unable to work for 18 months, in hospital the first two months, and had to relocate to live with family because without income I could not pay my rent (or any other bills). Of course, my credit went into the tank and I have a mountain of debt and don't know how to dig out on a minimum wage income.

[Minimum Wage]

Oh, and I didn't have health insurance either. Apparently hospitals have employees who scramble to get the uninsured on some government program so that they can get paid at least something, so I came out of the hospital on Medicaid and without medical debt.

But...don't let this happen to you!

[ammb]

good question. being part time my employer does not allow me to buy into the company's free-for-full-time-employees short term disability policy & they don't offer long term at all.

does any one - blog host or otherwise know of a good place of reviews & ratings for short & long term disability insurance?

[FMF]

Sorry. I do not.