Yes, you probably need disability insurance. How much disability insurance you need – and how long you need it to last – is another consideration. It all depends on your income, the makeup of your household and many other factors.
Three signs you need long-term disability insurance
Not sure if you need to buy coverage? Here are three telltale signs you’re someone who could benefit.
You're the sole provider in your household: If you’re the sole income earner in your household, disability coverage should be a top priority. If you become disabled and cannot work, you will still need to cover your rent or mortgage, insurance, groceries, utilities and other bills. While a solid emergency fund can come in handy for these situations, it may not be enough.
You could get ill: According to WebMD, the most common causes of disability before retirement include arthritis, back pain, heart disease, depression, cancer and diabetes. If you become disabled due to a condition that is not caused through your workplace, worker’s compensation plans will not help you.
You have dependents. If you have kids or other dependents, it’s crucial to make sure your income will be replaced in the event you become disabled. The amount of disability coverage you buy will have a direct impact on the quality of life of the people you love if you ever need it.
If you need help figuring out how much disability insurance you need, well, all you have to do is ask! A Policygenius agent can compare quotes and help you find affordable disability insurance.
Do you really need disability insurance?
If you think you’re immune to becoming disabled, think again. According to the Social Security Administration, one in four 20-year-olds will become disabled before they reach retirement age. That’s a sobering figure — and it goes to show how important disability coverage is.
On top of that Social Security benefits are hard to qualify for and can take years to achieve. Not only that, but you’ll have to be able to prove you cannot work in any job – not just the job you had before. The same goes for worker's compensation.
That's why it is important to get long-term disability insurance. If you become injured or unable to work, you will need to deplete your assets to pay for your care. Short-term disability offered through your employer may help for a short period of time, but it’s not forever. You can learn more about how disability insurance works here.