Most people don’t think about what would happen if they suffered a long-term disability. But, statistically speaking, over 1 in 4 of today’s 20-year-olds will become disabled before they retire. And this disability likely won’t be caused by an accident — most disabilities are caused by illness.
According to a survey by Life Happens, 7 in 10 working Americans wouldn’t be able to make it a month before experiencing financial difficulties if they weren’t able to earn a paycheck. Disability insurance is designed to help you make ends meet when your paychecks aren’t coming in, and helps you cover things like your mortgage, credit card bills and car payments.
Everyone assumes people who work in high-risk professions are the ones who need disability insurance the most. However, that’s not always true. While disability insurance can benefit most people, there are four types of people who need disability insurance more than others.
4 Types of People Who Need Disability Insurance
1. The Sole Provider of the Family
If you work outside the home earning a living for your family, disability insurance can go a long way to protect your earning potential. If you become sick or get injured and can’t work for an extended period of time, your livelihood could be in jeopardy. Disability insurance is designed to fill that gap so you can focus on what’s most important: getting well.
2. People in Physically Demanding Roles
If you work in a field that requires a lot of physical labor, like construction, nursing or physical therapy, and are expected to be on your feet day in and day out, you need disability insurance, even if your company offers a group plan. Individual disability insurance can provide financial support beyond your company’s workers’ compensation plan if you are suddenly unable to lift, walk or stand. Coverage picks up where other policies leave off so that you don’t have to dip into your savings to pay your bills while you are laid up.
If you have minor children at home who depend on your income, you may want to consider disability insurance. Because even if you are sick or injured, you still need to care for your family. This coverage is designed to provide funds if you are unable to perform your job.
4. Those With Recurring Injuries
If you struggle with recurring issues like back problems or nagging injuries, disability insurance can act as a safety net when you’re out of work for an extended period of time due to medical concerns. Protect your paycheck while you are rehabbing your injury.
Disability Insurance Coverage Options
If you’re someone who needs disability insurance, there are two types of coverage to consider: group and individual.
Group disability coverage is often offered by employers as an employee benefit and can be packaged as short-term disability (90 days or fewer) or long-term disability (extended leaves of absence). Both will cover a portion of your salary if you are hurt or too ill to work.
Many people also benefit from individual disability coverage. This coverage is purchased independent of your employer, and it’s portable (meaning you won’t lose coverage if you change jobs).
Disability Insurance for You
Your bills don’t stop when you’re injured. Make sure you’re able to cover your responsibilities, even if you can’t make it to work for a period of time. Your Farm Bureau agent can help you find the right disability coverage that meets your needs.