Disability insurance is your paycheck’s insurance if you can’t work. Despite popular belief, disability insurance is not only for on-the-job injuries. The most prevalent insurance claims are for pregnancy, cancer, and mental health issues such as anxiety and depression. And sometimes, social security disability won’t often cover your income loss to the fullest. So, here’s why you should consider purchasing disability insurance.
You’re the Breadwinner
You should consider purchasing disability insurance if your career is your significant financial asset. This is so you can protect against income loss for yourself and your dependents. Suppose you financially support a partner, children, aging parents, or anyone else. In that case, disability insurance can help ensure they’re taken care of if you cannot work due to an injury or illness. When you apply for a policy, you select precisely how you want to receive your monthly benefit and its duration.
You’re Paying Off Debt
Millions of millennials and Gen Xers are currently in debt, mainly from student loans and credit cards. If you have significant monthly payments, a sudden income loss can impact your ability to pay them off in full and on time. Even if it’s temporary, consider how much you pay on debt every month into your coverage amount. This will ensure you stay caught up if you have an injury or are sick.
There’s No Coverage from Your Employer
Most traditional employers provide short-term disability insurance, which typically only replaces up to 60% of your income for almost six months. Plus, you’ll have to pay payment taxes. Unfortunately, you’re out of luck if your injury or illness leads to job loss. This is why you should consider purchasing disability insurance because it can pick up where your emergency fund or short-term coverage leaves off.
You are Self-Employed
Furthermore, disability insurance is critical for self-employed workers because it can provide consistent income and help cover ongoing business expenses. If you work for yourself and shop for disability insurance, you’ll have to demonstrate tax returns from the past two years as income proof. You must also consider the waiting time to receive insurance payments since you lack short-term coverage from an employer to tide you over.
Get in Your Voluntary, Supplemental, and Health Insurance Policies with the MWE Partnership!
Are you a business looking to provide your employees with essential voluntary benefits? If so, look no further than The MWE Partnership. When you choose The MWE Partnership, you get experienced service and comprehensive voluntary benefit options that will meet all your employees’ needs. With over 17 years of experience, The MWE Partnership is your go-to provider for all your supplemental benefit needs. If you are interested in finding out how The MWE Partnership can help your business, contact us today! We encourage you to like our Facebook page and follow us on Twitter and LinkedIn for the latest voluntary benefit news!