You need to have disability insurance to provide you with income protection in the event you are hurt and cannot work. It is not a matter of if you will get hurt but when.
Over 30% of all workers will be injured during their working lifetime and not be able to work. This could be devastating to your finances of course if you are not prepared. But, there are ways to reduce the cost of disability insurance for you and your family.
Save On The Cost Of Disability Insurance
How will you pay your monthly expenses if not only do not earn an income but simply cannot physically do any work to earn additional income. How will you family survive?
That is why having disability insurance is so important. You are statistically four times more likely to be disabled and not be able to work than to die in your 30s.
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You Can’t Depend on Social Security
You cannot depend on Social Security disability insurance to cover you either. The Social Security Administration has a nasty habit of denying people’s claims for disability payouts. Or, they will make you wait and jump through hoops and red tape to get it.
To make matters worse, the Social Security Administration typically only pays out 40% of your income on average. This, of course, can leave you with significant gaps in your family’s monthly budget when you are dependent on your income.
How would you live off of 40% of your former income? Even if your spouse worked, that would cut your family’s take home pay by almost a fourth if you and your spouse earned the same amount of money in this example.
Build Up Your Emergency Fund To Save On Disability Insurance
You need to build up your family’s emergency fund in order to save money on disability insurance. Like most insurance policies, there are a lot of factors that go into the cost of your insurance premium.
Disability insurance is no different. Most disability insurance policies allow you to choose how long you are allowed to wait after becoming disabled before you can file a claim. Some policies let you file a claim right away, but those are very expensive.
Others let you choose to wait three months, six months, or even more before you file a claim. The longer you wait will reduce the cost of your disability premium of course. This is why it is very important for you and your family to have a strong, solid six month emergency fund in place.
It is not a matter of when you will need disability insurance. You are more likely than not to need it when you are younger and in your prime working years. Do not make the mistake of going without disability insurance and protecting your income that your family depends on to survive.
Do you balk at the cost of disability insurance? What is keeping you from buying an insurance policy?