You are earning a living and achieving the goals you have always dreamed of. You are in your prime and in your mind, you are invincible … until you’re not. Regardless of your current health and vitality, it’s still very important to consider the possibility that you might not always be in a situation where you can work and live the life that you currently do. If you rely on a salary to cover your expenses and to ensure that you survive in this tough economic climate, you need to consider putting disability insurance in place.
If you’re still sceptical and think this type of cover will never apply to you, you should, at the very least, consider the following statistics: There are 11 million disabled people in Britain (Source: Prime Minister’s Strategy Unit) and 78% of these disabled individuals acquired their impairment from the age of 16 and onwards (Source: Employers Forum on Disability). This means that you could be working and earning a living one day, but due to some unfortunate events, you might not have the means to do so the next. Scary thought, right?
A disability can present itself in a variety of forms. It can be anything from a physical impairment to a mental or learning disability. At the same time, not everyone defines a disability the same way. What one individual or insurance company views as a disability, others with a similar impairment might not be of the same opinion. This means that before you put your disability cover in place, you might want to read your insurer’s terms and conditions to ensure that you are all “on the same page” before you process your application.
If you are still on the fence and are not 100% sure that disability cover is protection that you need, perhaps the following reasons on why you need disability insurance might persuade you otherwise:
It’s just one less thing to worry about.
Living in modern times, we are already extremely overwhelmed with stress as it is. The last thing that you want to add to your worries is who will pay the bills if you can’t. To add, if you do fall ill or are overcome with an unexpected disability, you really do not want to spend this emotional and challenging time by worrying where the next pay check is going to come from. This should be a time where you heal and learn to adapt to the new changes life has thrown at you.
A disability income insurance policy with that includes the correct amount of coverage will not only make you sleep better at night even while you are paying the premiums (which are not as hefty as you might think), it will also bring you relief in the unforeseen event where you do need to make a claim.
Your future will always look bright.
No one chooses to live with a disability or a mental illness and when you envision your future, you are more likely to dream of being healthy, happy and wise. But sometimes life has different plans for us, a future that we are perhaps not quite prepared for. This does not mean that our disabilities should be the be all and end all, however. While your goals might have to change and your way of living might be considerably different too, you can still dream and make plans while continuing to look forward to the future and enjoying your life.
An insurance policy that offers the appropriate disability income insurance will help you to not only pay the bills, it will also ensure that you still have opportunities so that you can continue to live life to the fullest by obtaining your goals and pursuing your dreams.
Do it for your spouse.
This reason is especially important if you are the breadwinner or the sole provider in your family. If you obtain a disability, it’s not only your life that will change, but your partner’s way of living will change too. He or she will possibly have to find work of his or her own or extend working hours just to make ends meet. To add, your spouse might also have to cover the cost of medical bills and as well as the fees for caregivers to make sure you are in good hands while he or she spends most of the time at work. As a result, every drop will be squeezed out of the life you do have. Leaving little time for you to spend with your other half.
Disability insurance will certainly help financially and if the correct cover is in place, your spouse will not have to work too hard just to keep food on the table and a roof over your heads. Again, the monthly premiums are very affordable when compared to the sum that will pay out when tragedy strikes.
Do it for your children.
While this suggestion might really play on your heartstrings, it does so for good reason. We all have plans for our kids and we want them to be cared for to the best of our abilities. Our children depend on us not only for shelter, nourishment and love but they also look up to us for direction and opportunities.
In the event that you become disabled or ill to the degree that you can no longer work, by having a disability policy in place, you can still meet the needs of your children, and then some. While your life might be slightly uprooted, you can still keep the well-being of your children intact if you have the finances to back you. So, if you are a parent or perhaps you and your partner have just found out that you are expecting, then now is the time to start protecting your younger generations by putting the correct coverage in place.
Maintain the lifestyle you are used to.
While no one includes a disability into their future plans, life has this tendency to not follow through with the exact way that we envisioned it. You might be at the peak of your career in one instant and you might be hospitalised or confined to a wheelchair the next. In this event, things are inevitably going to change, but they do not have to change to the extent that every detail needs to be turned topsy-turvy.
If you have an appropriate policy in place, you can claim on your insurance to maintain the lifestyle that you are used to. How you live might have to change, but the way you live does not have to.
How to Get Disability Cover
While many individuals might automatically be covered for disability insurance by the company that they work for, this is not the case for everyone. If your employer does not offer this perk as part of your package or if you are self-employed, you will have to chat with an insurance agent or broker so that you can action the process yourself and put the correct policy in place. The agent will help you to determine what kind of life coverage you will need and to what amount. They will also help you to decide between the two life insurance options, namely, Short-Term Disability Insurance or Long-Term Disability Insurance.
- Short-Term Disability Insurance. Short-term disability (STD) offers salary protection that generally pays out up to 80 percent of your income. You can claim for this insurance if you have a qualifying illness or injury which prevents you from returning to work.
In most instances, the covered amount will be paid out to your personal account within 14 days from when the claim is actioned. Depending on your policy plan, this coverage can either be paid out as a lump sum or in monthly instalments. On average, it will comfortably maintain your lifestyle anywhere from 2 weeks to 2 years, depending on your plan details.
- Long-Term Disability Insurance. Long-term disability (LTD) is similar to STD, but provides cover over a longer period of time. Long Term Disability insurance also offers salary protection, but, unlike Short Term Insurance, it pays out at a lower rate of 50% to 70% of your salary. This cover can continue to pay out until the disabled person in question turns 65 – this will depend on the exact terms of your policy, however.
Your ability to make money is your most important asset. You can survive without a vehicle, fancy jewellery or the latest smartphone, but you cannot make ends meet if you do not have a stable income to rely upon. So, why would you insure all of your other valuables and assets and not your income? By signing up for disability insurance cover, you are protecting the thing that helps you to obtain and care for all of your other valuables – your hard-earned cash!