For office workers, of any level, there is little benefit in a disability income insurance policy. The value of such policies is very hard to determine. The reason for this is that the cost of such policies is primarily based on the risk factor of the work the applicant is engaged in.
The purpose of a disability income insurance policy for an individual is to protect the financial viability and maintenance of their family if they suffer an accident that inhibits their ability to work, or reduces that ability to the extent that they cannot meet their family’s financial needs.
How likely such a circumstance may be tends to be dependent on the work the person engages in. The more dangerous the work is, the more necessary a disability income insurance policy is and the more expensive the payments for it are likely to be.
A significant amount is dependent on the political and social benefits that apply locally or through the specific persons work or union affiliations. In some countries, such as New Zealand, there are uniform contingencies that provide for everyone.
In New Zealand the government agency called the Accident Compensation Commission (ACC) has predetermined specifics providing monetary compensation to people that lose bodily parts, such as eyes, fingers, arms and legs. Besides a relatively quick, immediate financial compensation, they receive a short-term or ongoing disability pension, dependent on circumstances. In addition, citizens can acquire personal disability insurance policies with private insurance companies that enhance the immediate and/or long term payments they receive from the ACC, improving their family’s financial well-being.
Disability income insurance is something that is undesired by all workers. No-one wants to think about becoming handicapped though an accident at work. Unfortunately, as companies, particular multi-nationals, endeavor to improve their bottom lines and profit margins, they strive to reduce their production costs as close to the local legal limits as they can.
The legal restrictions on this is one of the major reasons for moving their production base to third world nations overseas. While reduced labor costs is a primary reason, the reduction in the cost of occupational health and safety requirements for the virtual slave labor they employ in third world nations is an additional, significant advantage. Locally there is the tendency to cut meeting local laws and political requirements to the bone, if not lower by bribing local officials.
If you work in a safe occupational field or strict contract or union prerogatives protect your work circumstances, an insurance policy protecting your income may be unnecessary. But even in such circumstances, having one may be valuable. If the industry you work in is looking rather shaky in today’s world, having one may be essential for your families future well-being and to pay for your children’s future education.