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4 Reasons Why You Should Consider Disability Insurance When Getting a Job

You’ve heard about disability insurance time and again, but do you know exactly what it covers? You may think you do because, after all, is it not coverage for injuries sustained while on the job? Well, it is, but that hardly covers the breadth of it.

According to Business Insider, most claims for this type of insurance are for conditions you wouldn’t consider to be injuries sustained entirely in the workplace. Some of them such as pregnancy aren’t even injuries at all. Claims have also been paid for cancers and mental health conditions such as anxiety and depression.

Claims have been paid for depression

Truth be told, these conditions can happen without any warning and impact negatively on your ability to earn a living. That’s where the disability insurance comes into play because, honestly, Social Security won’t cover much.

How about we look into reasons why you should take out that plan?

You are Your Family’s Breadwinner

A job is a huge financial asset and if you are lucky enough to land a well-paying one, good for you. With such cash influx comes certain responsibilities, hence the need for disability insurance, just in case anything ever goes wrong.

You could be financially supporting your parents, spouse, kids, other relatives, or just anyone else. Taking out this insurance means that should you ever lose your source of income their lives won’t be thrown into disarray.

With cash influx comes certain responsibilities

You are Paying Your Debts Off

With the tough economic times, millions of Americans are finding themselves borrowing more but having difficulties in paying up. A big thumbs up to all those trying to get themselves out of this hole, and they are just the kind of people who need disability insurance.

Most lending institutions have a monthly payment schedule that works well with salaried debtors. They are paid at the end of every month, and are, therefore, able to service their debts. But what would happen were they to lose their jobs?

If they had taken out an insurance plan, they’ll just have to put in their claim and continue paying off what they owe every month just as before.

Millions of Americans are finding themselves borrowing more

 

No Coverage at Work

Traditionally, employers only offer short-term plans where disability insurance is considered. They tend to be in the range of at least three months to a maximum of six, but what are you to do thereafter? And just so you know, you are required to pay taxes on these monthly payments.

Experts advise that you should always have a long-term insurance plan to avoid any upheavals that may plague you once your six-month work coverage runs out. This plan is effective since it kicks in roughly three months to a year after your injury, picking up where the short-term work plan left off.

You are Self Employed

According to Business Insider’s Jackie Lam, individuals who are self-employed are the ones who need disability insurance the most. Benefits from such a plan, the writer says, are a good source of consistent income and can also be put back into the personal business.

To apply for coverage, you have to provide your tax returns and Polygenius experts say that you should consider paying higher premiums every month.

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