Disability insurance acts as a safeguard for your income, akin to insurance for your paycheck. It provides financial support if you’re unable to work due to illness or injury, ensuring you still receive a portion of your income to cover essential expenses. From mortgage or rent payments to utility bills and medical expenses, disability insurance offers vital protection against financial strain during challenging times.
Considering that one in four individuals may experience disability during their working lives, as reported by the Social Security Administration, disability insurance becomes even more essential. Your future earnings potential could amount to significant sums, making protection against unforeseen circumstances paramount.
When assessing your need for coverage, it’s crucial to consider all forms of earned income, including wages, salaries, tips, net self-employment income, and taxable employee compensation such as bonuses and commissions.
Various disability insurance policies cater to specific professions, including tailored options for medical professionals and self-employed individuals. While some employers offer disability insurance as part of workplace benefits, it’s essential to evaluate whether the coverage provided would suffice in the event of a disability.