How To Buy Disability Income Insurance

One of the worst things that can happen to you and your family is for you to stop bringing home a paycheck because you become disabled.  Consider purchasing disability income insurance.  This will help alleviate some of the financial burden that will come as a result of you being disabled and unable to work.

  • Figure out what your current assets and liabilities are.  This will help determine how long you can survive on your current income.  Write this number, in days, down.  This is extremely important.
  • Contact your company’s benefits department and find out how much short term disability insurance is provided.  Write down this number.  As with the previous number, this number is important too.
  • Contact your company’s benefits department and find out how much long term disability insurance is provided.  Write down this number.  As with the previous numbers, this number matters.
  • Sum up all of the days that you previously wrote down.  It is helpful to convert this sum into years.  Add that number to the age you will be at your next birthday.  Subtract that number, which is in years, from sixty-five.  This will help approximate the number of years you could potentially be at risk if you unfortunately are unable to work for various reasons.
  • For example:  The days that you wrote down sum up to 4.25 years and at your next birthday you will be 38. 
    65 – (38+4.25) = 22.75
  • You must decide if you can take this risk upon yourself, or if you would prefer to transfer the risk to an insurance company through your employer.
  • Let’s assume you qualify.  Call your company’s benefits department.  Apply for as much of the company’s group coverage as you can buy.

There will often be a difference between your company’s coverage and your needs.  The essential part here is to purchase additional disability income insurance. Shop around for what you feel is the best package for you.

Purchasing disability income insurance is something everyone should consider.  If you were unable to receive income due to an injury or an illness, you would be in serious financial trouble.  Please purchase disability insurance.  You will be happy you did.  If you have a family, they will be extremely happy with this purchase, especially if you become disabled and are no longer able to work and provide an income.  Look out for your family.

 

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