What if tomorrow you fell seriously ill or get critically injured and you cannot work for a long period of time? Who is going to pay the bills?
If you do not have a regular paycheck, you and your family could be in grave danger. You could face difficulties paying your rent, your mortgage and your car. Imagine a situation where you are unable to pay your electricity bills, you have no money in your wallet to buy your family a nice roast and your child is crying because he is hungry
You may think this cannot happen to you. How could you be so unlucky to be in such a situation? You could not be more wrong. Studies have shown that 1 of 3 Americans become disabled at some point in their working life. With 33.3% chance of disability rendering you unable to work, it is a good idea to have disability insurance. While you are unable to work, disability insurance can be a substitute for your income, assist with paying your bills and protect your long-term savings.
What does disability and short term disability insurance mean? All these terms are alien to me!
Any form of illness and injury that renders you unable to work at your job or occupation for a long duration constitutes a disability. These injuries and illnesses can either take place on or off the job.
Short Term Disability Insurance is an insurance policy that begins paying you monthly benefits after an elimination period which is the time between the occurrence of the injury or illness and the start of benefits. The sum of monthly benefits you receive will vary depending on several factors; the level of disability (total or partial disability) and the level of benefits chosen by you when you purchase the policy. As long as you are under the care of a physician and are incapable of returning to work (for the benefit period chosen when purchasing the policy), your benefits will usually continue.
Is short term disability insurance necessary for me?
It is not at all necessary if you are very well off and have the financial resources to pay for your bills over a 6 month duration of being unemployed. However, if you fall in any of the categories listed below, you should definitely consider purchasing a short term disability insurance policy:
– The absence of any emergency savings to support you through a few weeks or months without a regular source of income.
– Your savings is reserved for long-term financial goals.
– You have a lot of debts – for example mortgage, car loans or credit card balances that need you to make regular payments.
– You are the only person in the family with an income.
– Your heath or other insurance policies have high deductibles or require you to pay out your own pocket.
Where do I get a short term disability insurance?
Employers usually include short term disability insurance in your benefits package. You may also be offered an optional disability insurance if you are willing to pay the premium by yourself.
In the event that you are unable to obtain a short term disability insurance, you should consult an insurance broker. They are able to make the decision if such coverage is necessary and if you and your family are sufficiently protected from the many uncertainties in life.
We all know how hard it is to wake up in the morning and wonder how you are going to pay the bills. Do not risk the uncertainties. Be well insured and worry less about your future.