Considered by experts to be one of the most important types of insurance you can buy, disability insurance protects two of your most valuable assets: your ability to work and your income.
The chances that you could develop a disability that prevented you from being able to work are higher than your chances of dying. If you were to become so injured or ill that you were suddenly unable to carry-on in your profession, how would you be able to provide for yourself, your family, and pay for your living expenses? When you own disability insurance and find yourself unable to work because of a disability, you are paid a percentage of the income you would be making were you able to work. Ideally, this monthly income, or benefit, should allow you to maintain your standard of living compared to the onset of your disability.
Because nearly everyone must work to make an income to pay for the expenses associated with families and living, nearly everyone should purchase disability insurance.
You may have already come in contact with disability insurance through your profession. Employers frequently offer disability insurance to their employees as part of a benefits package. You therefore have the option of obtaining disability through your employer.
Many people opt for employee-provided disability insurance. Buying disability insurance this way is usually less expensive than purchasing it on your own. However, there are several points to consider when choosing to purchase employee-provided disability insurance:
– The disability insurance policy provided by your employer has not been tailored to your needs and therefore, may not provide adequate coverage;
– The disability policy may not be portable.
An important consideration to take into account when obtaining disability insurance through an employer is its portability. What is a portable disability policy? A disability policy is portable when you are able to take it with you if you change jobs or places of employment.
Why is a portable disability policy such an advantage? Because it continues to provide disability coverage wherever you go.
These days, the chances that you will stay at your current place of employment forever are slim. You may find that your needs are better met at a different company or workplace, you may be offered a better salary, or your company may go bankrupt. For whatever reason, you may leave your company. However, a non-portable disability insurance policy will not be going with you.
If you were to leave your employment for some reason it is crucial that you are able to take your disability insurance with you. Normally, when you leave your company, you leave your company-provided disability insurance policy as well.
A portable disability insurance policy is transferable, and continues to provide protection if you change jobs or companies. Without a portable policy, you could be left without protection when you need it. Additionally, a portable policy may be able to continue to provide with protection if you change jobs and have shortened hours.
A policy provided by an employer is rarely portable. However, disability policies purchased individually usually to include portability. You may choose to obtain employer-provided disability insurance, but provide yourself with a cushion by purchasing an additional disability policy that includes portability on your own. Individual coverage is expensive, but a portable policy provides added coverage, particularly if you do not feel you will stay with your current company forever.
You may wish to discuss the importance of a portable disability policy with your insurance agent or provider. Their insight will help you decide if a portable policy is something you need to pay additional money for, or if the added coverage it provides is indispensable.