Did you know that May is Disability Insurance Awareness Month? First started in 2007, the month of May was the first time that information about disability insurance became more easily accessible to millions of Americans. Recently, Disability Insurance Awareness Month has become a time in which many insurance professionals come together in order to help educate the public on the importance of disability insurance.
What is disability insurance? If you are unable to work due to illness or injury, disability insurance may help by replacing a portion of your regular income. This can be essential if you are burdened with medical expenses and unable to work.
What about Workers’ Compensation? It can be tempting to think of workers’ compensation as a failsafe option for disability protection. However, workers’ compensation only pays benefits to individuals who become disabled while at work. If your disability is the result of a car accident or another off-the-job activity, you may not qualify for workers’ compensation.
The flexible option. What it really comes down to is reliable flexibility. A privately owned disability insurance policy can be obtained through your insurance professional (who may have options suited to your particular situation). Even better, because you own this policy, it will travel with you, even if you change jobs down the road.
At the end of the day, it’s really about your risk tolerance. Current research shows that the average 20-year-old worker has more than a 25% chance of becoming disabled before they retire. For many consumers, those risks are just too high. That doesn’t mean you need to rush out and purchase a policy right this second, however. You should consider speaking with your insurance professional before making any changes to your current policy strategy.