Disability insurance replaces your income if you have to take time off of work because of an injury or illness, which makes it especially important for parents whose families rely on their income.
You can use your disability insurance benefits to pay for your family’s regular expenses, including childcare, groceries, and bills. If you’re planning for parenthood, make sure you have short-term disability insurance, which can cover time off for pregnancy and childbirth.
What kind of disability insurance do parents need?
If you’re a parent, you should consider getting long-term disability insurance. Long-term disability insurance can replace your income for decades if a disabling illness or injury prevents you from ever working again, making it especially valuable if you have young kids and years of expenses ahead of you.
Long-term disability insurance typically pays out monthly if you need to file a claim, and the benefit payouts go straight to your bank account, just like your paychecks. You can use your long-term disability insurance policy on whatever you need, like:
Childcare and schooling
A family member’s college tuition
Out-of-pocket medical costs
Mortgage or rent
Grocery and food
Outstanding debt
If you have a family that relies on your income, it’s a good idea to have both disability insurance and life insurance. Disability insurance protects your family financially if you can’t work, and life insurance protects them if you die unexpectedly. Policygenius can help you get both types of policies.
What to know about disability insurance if you’re a divorced parent
You may have some kind of child support agreement with your child’s other parent if you’re divorced or separated. If you become disabled while you’re paying child support, your benefits can count as income and may be garnished if you fall behind on payments.
That said, it’s possible to get a modification order from the court if you need to lower your child support payments while you’re out of work.
Do you need disability insurance if you’re thinking about having kids?
Yes, you should get disability insurance if you’re thinking about having kids. Short-term disability insurance (which usually pays benefits for 3 to 6 months) can replace your income if you’re unable to work because of pregnancy or childbirth, but you need to have it before getting pregnant — otherwise the pregnancy may be considered a pre-existing condition and wouldn’t be covered by disability insurance.
Long-term disability insurance is also important to have if you’re thinking about having kids. If pregnancy-related complications keep you out of work for longer than your short-term insurance will pay out benefits, you can fall back on your long-term benefits, even if an injury or illness means you’re unable to work for years or even decades — and the earlier in life you buy it, the cheaper it will be.
Where can parents get short-term disability insurance?
You may be able to get short-term disability insurance through work, either for free or subsidized by your employer. If you get short-term disability insurance as a benefit, all you have to do is opt in to coverage during your employer’s open enrollment period, just like you would with employer-sponsored health insurance.
Disability benefits for parents of disabled children
Your disabled child may be eligible for disability benefits from the Social Security Administration. A disabled child may qualify for Supplemental Security Income (SSI) benefits if they’re expected to be disabled for 12 months or longer, but it depends on how much they earn from work and the details of their disability.
Alternatively, the Social Security Disability Insurance program (SSDI) offers benefits to some disabled adults whose disabilities began before age 22. These beneficiaries qualify for the so-called “child’s benefit,” since their benefits go on your — their parent’s — Social Security earnings record.
Both of these programs have their own rules for eligibility and restrictions, so, if you’re the parent of a disabled child, you should talk with a Social Security representative and see if your child qualifies.
