Disability Insurance 2

Disability insurance coverage helps protect your most valuable asset – your ability to earn income – by providing you with an ongoing monthly income if you injured or sick that left you unable to work and earn a living.

Importance:

Let’s suppose you didn’t have disability insurance, and a few sick days eventually turned into weeks, months or years off from work. How would you pay your bills? Would you dip into your savings? What happens when that’s gone, and your next mortgage payment is coming up. What do you do?

While it’s an unpleasant situation to think about, that’s exactly why you should consider including disability coverage to your financial plan.

Things to keep in mind

• Some policies will offer coverage if you’re unable to do only your own job, while others will provide coverage if you’re unable to do any job.
• Your coverage should be indexed to keep up with inflation, otherwise your buying power will gradually decrease.
• The amount of coverage you choose should be enough to cover all of you and your family’s needs for an extended of time frame.

Any disability protection you have through your employer will end if you change jobs, so owning your own policy gives you greater flexibility – plus it can top up existing employer coverage.