Obtaining sufficient insurance is an important step in any family wealth management plan. If your household depends on the monthly paychecks from your employers in order to maintain your standard of living, then disability insurance is something to strongly consider.
Disability income insurance replaces your income or a percentage of your income if you are unable to work due to an injury or illness. Unlike short-term disability which caps benefits after a set period of time, disability income insurance continues if an individual is unable to return from work due to their medical condition. The amount of coverage will affect how much you pay annually for the insurance.
Disability income insurance can be in effect as long as you pay your premiums and can either be non-cancelable or renewable. If you change jobs, the policy will still be with you. It can only be taken from you if you fail to pay the premiums or if you cancel the policy.
Social Security Disability and Workers’ Compensation benefits may only apply in select situations and they have a ceiling to their benefits that may not meet your monthly expenses. Because of these facts, it is unwise to solely rely on them. Moreover, these benefits may change due to legislation and there are no guarantees that your condition can qualify for them.
If you rely on your employment income to meet your expenses, then disability income insurance is a product you should seriously consider purchasing. It can provide assurances and stability not only for yourself but also for your family wealth management plan.