The thought of becoming disabled provokes fear in the hearts of many, and yet the ramifications of such an event may be far more devastating than first apparent. Besides the obvious tragedy of the physical results, all aspects of one’s life (and that of the family) may be shattered as income disappears. Disability income insurance is one way to protect against this.
The funds you need will be there
The exact terms of disability income insurance vary greatly according to the actual plan. However, the primary benefit is that they will replace a part of your income if you become disabled and unable to work. This number varies greatly, and although it is often not the entirety of your salary, it will hopefully be enough for you to pay your most vital of bills such as your mortgage, food, insurance, etc. Without these benefits, some people may not be able to continue paying these debts. At the same time you are dealing with a life-changing injury or illness, you may also be dealing with losing the very home in which you live. It is sadly the case that families have even become homeless when left with no income and no way to earn it. Everything about your life could be in jeopardy if all of your funds stop and you have no way to earn more.
When a disability arises, you may have staggering medical costs, even if you have health insurance. Many health insurance plans have limitations, exclusions, high deductibles and co-payments. The money you receive from disability income insurance could help pay for these extra costs. You may not feel that you have the money to get the medical care that you need without it.
Some people may work even when they should not
With many disabilities, it would be extremely difficult for a person to work. And yet when faced with no other choice, some people may work even when in excruciating pain or while injuring themselves further. They may simply have no choice. They may not be able to take the time to heal and their injury or illness may get even worse because of it.
Children may be affected
Many workers do not get disability income insurance for themselves, but because of their children instead. When your income is cut off with no end in sight, the changes can seem the most drastic for kids. Some older kids may even choose to drop out of school so that they can work and be the breadwinner for the family instead. No one wants this for their children.
Peace of mind
Even if you never use it, disability income insurance still can offer benefits to you and your family in the form of psychological relief. Many people lay awake at night wondering what would happen if they could not bring in the income that they do, frightened about the ramifications. If you choose to purchase disability income insurance, you will know that you will have at least some coverage should the unthinkable happen. Peace of mind is valuable indeed, and can provide positive results even if you never need to make a claim.
Some people have some disability income insurance though their employers, but it is often very limited. Of course, premiums must be paid, thus depending on the financial situation of the worker, it may or may not be worth it. Workers should carefully evaluate their situation and the available plans to decide whether it is right for them.