Individual Disability Insurance

If your income were to stop, would you have enough to live off of? If you are like most people, you are living paycheck to paycheck, or close to it. You may have a savings account or stocks, but consider how quickly those funds would run dry once you start using it for all of your monthly bills. You need backup protection for your income.

Likelihood of Disability

Considering that people are living longer than they ever have before, the likelihood of you becoming dependent due to a car accident, illness or otherwise becoming disabled is far greater than it has been in the past. Who will you count on to take care of you during your time of need? Individual disability insurance is one way to arm yourself to handle such a situation should it occur. It protects your income and allows you to maintain your lifestyle.

Policies Vary

Generally individual disability insurance replaces 45 to 60% of your gross income when you become too ill to work. But companies and terms vary greatly. Look for the best protection and the best rates. Short term insurance covers nearly 100% in the beginning and is used when you are out of work for six months or less. Long term is the most important insurance option you can buy, it replaces 50-70% of your salary. Most companies also offer the option of purchasing additional insurance to make it 80% of your income.

Portability

The nice feature about buying this type of insurance for income protection is that you can take it with you, no matter where you work. You pay the premiums so the policy is yours to keep, unlike policies provided by your employer. In this case, you would lose your coverage if you changed careers or lost your job.