More than 1 in 4 of today’s 20 year-olds will become disabled before they retire. (U.S. Social Security Administration, Fact Sheet February 7, 2013).
If you can’t work because you are sick or injured, who will pay your mortgage, rent, food bills, etc…? Disability insurance is a key part of any financial plan. In fact, most people don’t realize that their disability coverage that they have through their employer is generally not enough to satisfy all of their monthly expenses should they be unable to work.
Unlike life insurance (you’re either alive or you aren’t), disability insurance policies can vary significantly in terms of what is considered an eligible claim and when the policy will pay out benefits. It’s critical that you understand the differences between policies before making a decision that could affect your ability to obtain insurance.