Disability Insurance vs. Health Insurance

... continued below

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Disability Insurance vs. Health Insurance ... continued from above

The major reason why so few people opt for a smart amount of disability insurance is that disability insurance policies are not as widely held or as commonly discussed as life or health insurance policies.

This leads to the current situation, where many people remain uneducated as to the possible benefits that disability insurance can offer them.

Disability insurance works within a fairly simple framework.

In the event you become disabled in some way and cannot do the job that you are trained for and accomplished in, your insurance will pay you some amount of tax-free replacement income.

Disabilities come in many shapes and forms and include anything from vertigo to obesity to any other condition that interferes with your ability to work can potentially make it possible for you to file a disability insurance claim.

To many people, disability is a word that brings to mind hospitals and medical costs.

To be certain, you may require a substantial level of care in order to recover from the injury or illness that has made it impossible to work, and having good health insurance is an important part of making it through this kind of situation with your bank account still in the black.

However, it is all too easy to forget about the fact that if you find yourself in this situation, medical costs are just one piece of the financial pie.

If you cannot work because of a health condition, trying to keep your home, car, and other assets can be a serious struggle without the assistance that a disability insurance claim can offer.

The exact amount of money you will receive as income replacement varies depending on the kind of policy that you have, but most people who have disability insurance are insured for roughly 75%of their normal gross income.

This kind of helping hand during the difficult period of recovery after an injury or illness can mean the difference between being able to make ends meet or falling deeply into debt.

Although few people enjoy planning for a worst case scenario, spending some time figuring out how you could financially weather becoming disabled may lead you to put some important plans into place.

This kind of forethought can help make a difficult period much more bearable.

Many people find that knowing they are prepared for the worst helps them enjoy more carefree times; so consider taking out disability insurance for your peace of mind as well as for its other benefits.

It's worth mentioning that disability income protection insurance premiums are tax deductible for both the employed and the self-employed.

Reader comments about this article
By ADA
If my husband got injured we would be in deep trouble, because HE is the business. I think this is an indispensable coverage for those who are personal trainers, yoga instructors, coaches, etc. who use their bodies for their work.
By Esther
My husband was diagnosed with Multiple Sclerosis earlier this year and whilst he is still well and able to work, knowing that we have income protection is one less worry for our future.
By Kim Roberts
I found this article very informative, I have considered income protection before, but thought I already have life insurance. I will look into this.
By Financial Services Online
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By Mark Woodley
Having just returned to the workforce following 17 months on claim for stress, I cannot imagine how I might have survived financially without income insurance. My insurance company even paid a rehabilitation benefit to help me retrain in a less stressful job.
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