A life-changing disability can begin at any time. There’s no magical age you must reach first, nor is there any lifestyle or career that makes you immune to the risks of becoming disabled. Yet if this is all true, why do only around 20% of people surveyed actually have disability insurance? Maybe it’s because many people underestimate the value of having this kind of protection. That’s why May has become Disability Insurance Awareness Month so consumers get a chance to learn why they should immediately add this insurance to their portfolio.
What is Disability Insurance?
Many people skip optional and supplemental disability insurance policies because they assume that they’re already protected through the Social Security Disability Insurance program. Unfortunately, this is not always true. You must pay into the SSDI program through your FICA tax payments for quite a while before accumulating any benefits, and you can still be turned down for withdrawing these benefits and spend years appealing those decisions. Disability insurance requires only that you file a claim and have passed a short waiting period, such as 30 to 90 days after starting the policy. It’s a private form of insurance you must start and pay on your own, and it’s not legally required in California.
Why is This Insurance So Valuable?
Both short-term and long-term disability insurance policies pay you when you’re unable to work or can’t earn as much as you used to due to your injury or illness. Regardless of the form or cause of the disability, you have peace of mind knowing you’ll still have money to cover your bills and continue living your regular lifestyle. Since other forms of disability insurance and protection can take years to kick in, you can lose your home, car, and other important things in the process of trying to get the compensation you need. Having your own private disability insurance is the only way to know you’re really protected from the first day of recovery onward.
How Does Supplemental Insurance Work?
It’s a grave mistake to assume that you only need legally required forms of insurance, such as home and car insurance. Supplemental disability insurance is optional, but it’s so valuable that you should not go without it. As long as you can afford to make your premium payments, you’ll sleep better at night knowing you’re protected in case of an unexpected accident. Most disability insurance policies also include payout options for your beneficiaries in case you pass away rather than surviving to become disabled. It’s one of the most valuable supplemental policies you can own.