Without a crystal ball, there’s no way of knowing what the future holds when it comes to a personal disability. Even so, there are known situations where owning an individual disability income policy is recommended.
Disability income insurance replaces a large portion of your income in the event you become sick or disabled and are unable to pay your bills.
The Insurance Information Institute offers an in-depth look into the types of disability insurance available.
According to insurance expert Edward E. Graves, anyone earning at least $20,000 per year should have individual disability coverage provided by a private company. This is particularly important for business owners and the self-employed.
Depending on your line of work, companies may vary in how they choose to provide disability income. Some may offer no disability insurance while others may offer it at a special rate or higher than usual premiums. It just goes to show that research is key.
Another work-related situation where having individual disability insurance is essential is when such things as mergers, takeovers, bankruptcy and other major financial problems can cause a company to cut back on employee benefits like disability income insurance. In some cases, policies may be terminated altogether. Additionally, changing jobs from an employer who provides disability income insurance to one that doesn’t can leave you financially vulnerable.
By relying on an individual disability income policy over employer-provided coverage, you can steer away from work-related unpredictability. The policy travels with you and can be adjusted to any line of work.
