Thursday, June 16, 2011

3 Compelling reasons to obtain a disability insurance policy

3 Compelling reasons to obtain a disability insurance policy

Disability insurance can be defined as that type of insurance which safeguards your (beneficiary) earned income against the risk that a disability may stop your earning capability. You may receive the disability insurance benefit in the form of short-term disability benefits, long-term disability benefits and paid sick leave. Though disability insurance is not much in vogue like the life insurance, but the importance of having a disability insurance policy can’t be denied at all. Here is the list of few compelling reasons why you should purchase a disability insurance policy.

· The chance of becoming disabled is more than death

At any point of time, the chance of becoming disabled is more than dying. The mere fact that nearly 12% of the adult US citizens are prone to long-term disability, speaks volumes in favor of the disability insurance policy. According to an estimate, one out of seven workers will suffer a five-year or longer period of disability before attaining the age of 65. According to an estimate by the National Association of Insurance Commissioners (NAIC), if you have already crossed 35 years of age, then the chances of catching a three-month or longer disability before you reach the age of 65, are 50%. These odds would not be a problem if you already have substantial amount of savings. Other wise, purchasing a disability insurance policy makes good sense.

· Disability is very costly

Disability can indeed be very catastrophic for you and your family. It would inflict irreparable emotional and physical loss to you and your family. In addition to this, the financial burden associated with disability, will add to the emotional pressure. Unless you have the proper disability insurance policy in place, you will face the real hardship.

· Not easily available

It is not quite easy to obtain a disability insurance policy. In fact, only a handful of insurance companies offer this policy. But the crude reality is that if your income is very much essential for you and your family to live, you should have obtained a disability insurance policy.

If your income is very much important for you and your family, then you can surely obtain disability insurance policy.