Why Disability Insurance Is Key to Your Financial Health

Most people make it a priority to purchase adequate levels of home, auto and even life insurance, but few make the same commitment for disability coverage.

Unfortunately, research shows disability insurance is one of the most urgently needed forms of coverage available. It is vital to ensuring financial stability, though, as nearly 80% of people are likely to experience at least six months of disability during their lifetime.

Disability insurance provides financial protection in the event of an accident, illness or injury. Even those with a hefty emergency fund in place may find their accounts insufficient to meet the additional demands of child care, home health services, medication or other needs during a disability.

Long-term disability is one of the leading causes of bankruptcy and poverty in the nation, affecting not just the ill or injured person, but the entire family. Even short periods of disability can have a dramatic impact on the finances of an entire family.

Unfortunately, government-sponsored forms of disability coverage often have extensive waiting periods and other limitations that may result in a devastating financial crisis, especially if a family is dependent upon a primary wage-earner for support.

Disability insurance ensures that the household is able to meet basic obligations whether the situation lasts a few months or several years. Like most forms of insurance, though, it’s most affordable when you are still healthy.