Have you ever thought about what you would do if you were every seriously ill or injured? Most people don’t—it’s not really pleasant. It is, however, important. If you’re ever severely hurt or sick, you could easily be off work for months. Most short term disability insurance only covers three to six months of benefits. If you’re out of work longer than that, you’ll need your long term disability insurance!
Don’t think of it as something that you should probably have—think of it as an essential. There are far more benefits than drawbacks.
Peace of Mind
If you don’t have income, it’s awfully hard to cover your rent, buy groceries, or pay your credit card bills. That’s going to cause stress and tension—which is the opposite of what you need when you’re trying to recover! The best thing you can do to get back on your feet and back to work quickly is to be able to relax. Stress can be a huge detriment to your health. It can cause heart disease, weaken your immune system, and overall slow your recovery when you’re sick or injured.
Even if you never use it, having long term disability coverage lets you relax knowing that if you do need it, it’s there.
Financial Stability
Emergency funds are great, but how long can yours last? Most people have built one that can pay all of their bills for three months, tops. With your short term disability, you can probably count on having your bills covered for six months or so. What happens when that runs out? Are you confident that you’ll still be able to pay your bills?
Sure, you may not want to spend the money on insurance, but those savings aren’t worth potentially losing your home.
Smart Investment
Did you know that according to the Health Insurance Association of America, seven out of ten employees aged 35-65 will be disabled for three months or longer during their lives? When you look at it this way, it seems pretty likely that you’ll need to cash in on your plan! You pay in far less than you get out. The average disability insurance coverage costs 2-4% of your yearly salary, but when you make a claim, you’re paid 30-60% of your salary every month!
Drawback?
You may end up paying for a policy that you don’t use if you’re one of the 30%. But really, it’s better to be protected.
