Why Should I Consider Disability Insurance?
30 Nov 2015
The need for disability insurance can come at various times in your life—both in your working years and in your retirement years. Statistically, you are more likely to become disabled during your working life than you are to die prematurely
Yet most people, if they were to carry one of those two coverage types, will carry life insurance and not disability.
Classic disability coverage replaces income or a portion of income. Have you considered how you will replace your lack of ability to contribute to a 401(k) or an IRA? If you have business obligations, how will you continue? How will you keep the lights on? There are strategies to address each of these questions.
In retirement, disability insurance often takes the form of long-term care coverage. From a financial planner’s perspective, here is the major advantage of long-term care insurance: If I know that you have that benefit available to you, that means I don’t have to reserve for that in your retirement distribution plan. And as a result, it will allow you the freedom and flexibility to spend more money in retirement and live your ideal life.