If you're like most people, you depend on your paycheck to pay your monthly living expenses.
Disability insurance provides you with financial security when an accident or illness causes you to be disabled and unable to work or earn an income. Becoming disabled through an injury or sickness can mean a significant loss of income. Disability insurance is a form of health insurance that provides a person who becomes disabled with income to cover living expenses that continue in spite of the disability.
If you became sick or hurt and couldn't work, how would you pay your bills? How would you maintain your living standard? If you're like most people, your ability to get up each day and earn an income is one of your most valuable assets. Furthermore, your chances of becoming disabled at some time during your working career are probably higher than you would expect.
Disability insurance can replace a portion of your income when you are unable to work because of injury or illness. There are two major types of disability coverage:
Short-term disability provides an income for the early part of a disability. A policy may pay benefits for two weeks up to two years. Short-term disability insurance coverage is often included as part of an employee benefits package.
Long-term disability helps replace income for an extended period of time, usually ending after five years or when the disabled person turns 65. Some people have long-term disability insurance coverage provided by their employers; others purchase it individually.
Disability insurance is one of those things that no one wants to think about. Everyone wants to think they'll be healthy and active from now until forever.