If you don't get your paycheck this month, is it ok? Honestly, have you ever thought about it? It's a fact that, today about 70% of American families cannot afford the missing paycheck for more than a month. But what if you fall sick? What if you broke a leg and cannot go to work for the minimum of two months it's going to take for it to heal? The solution is to invest in disability insurance for individuals through which you could be financially protected for a short term (3-6 months) or even a long period of time or till you reach your retirement depending on the kind of policy you choose.
But my company already covers my health...even after I leave. Yes, your company might provide the health coverage you need and through a government regulation called COBRA, you would be able to continue coverage even after leaving employment. But, make no mistake, you would be entirely responsible for the premiums after you leave employment plus, this facility is only available till eighteen months after termination. Health insurance covers for medical expanses but do not pay for your rent/mortgage, foods, clothes, your car and insurance payments and all other expanses. There is also the possibility of additional expenses like household expenses and child care which will burden you. A better alternative to continuing coverage, Disability insurance replenishes 60 to 70 percent of your paycheck so you can forget about drastic lifestyle changes.
There are several different kinds of disability insurances as we hinted before, so which one would be the best for you? Googling won't fetch you the answer to this one, nor does consulting an expert right away. Take a moment and evaluate your compulsory monthly expenditure, the basic needs of you and your family and additional expenses that might befall in case of total or partial disability. Now think about how much you can spare each month in terms of premiums. If you have these basic figures in mind, you are ready to go about shopping for disability insurance.
Did you say expert? Why can't I do it myself? Of course, you can find out all you can about your disability insurance policy before signing on. Although an expert can advise you on intricacies such as "own occ", "guaranteed non - can" provisions, waiting periods and incontestability clauses, etc.
Anyone could need disability insurance during any point of their employment. Most importantly, people with bad medical or family history of illnesses, even those with a bad driving record! That is, basically anyone who wishes to retain the security of their paychecks during mean times.
