Disability insurance is essential for many reasons. At any age, you can suffer an injury or illness that leaves you unable to work and provide for your family. With disability insurance, you can protect your income. The most important asset you can have in life is your ability to earn a living. Disability insurance will help by providing you a percentage of your income if you become disabled one day. With insurance being a must-have for everything from phones, to cars, to laptops and more, securing your income should be one of your top priorities. Let’s take a look at the benefits and importance of disability insurance.

Anyone who works should consider enrolling in a disability insurance plan. According to Life Happens, one in four people will suffer a life-altering disability that will lead them to face financial hardship. There are many disability insurance plans to choose from; some are even tailored to self-employed individuals, while others are tailored to people who work in specific professions. 

There are two types of disability insurance; the first is short-term disability insurance, and the second is long-term disability insurance. Short-term disability insurance will help you to cover income loss for about three months. In comparison, long-term disability insurance will assist you in lost income experienced spanning anywhere from one year to the rest of your life. 

The best way to determine how much disability insurance you will need is by totaling your monthly expenses. You will also want to include any personal savings you could rely on in the event of injury or illness, along with the current disability insurance you already have. You can use a Disability Insurance Needs Calculator to help you determine your need.

The cost of disability insurance can range depending on a wide variety of factors. These include your age, benefit period, benefit amount, health status, occupation, and terms of the policy itself. For a long-term individual policy, you can expect to pay up to 1% to 3% of your annual salary.