Disability insurance is a policy that helps protect you and your family if you were to unexpectedly fall ill or have an accident that left you unable to work for an extended length of time. Accidents and illnesses are a fact of life and could occur at any time.
According to studies, one in three people will be disabled for 90 days or longer at least once before they reach the age of 65. The average length of a disability, if it lasts longer than 90 days, is 2.9 years. Disability insurance allows you to rest easy if you are unable to work due to an illness or injury and unable to earn an income as you will receive a monthly payment after a pre-determined waiting period. Although some people may have insurance through work it may not cover everything which is why it is beneficial to have your own personal coverage. Individual insurance is more flexible and can help protect more of your earnings.
Unfortunately, your financial commitments don’t just disappear if you are unable to work. Disability insurance works when you can’t by providing you with a monthly income to help cover your ongoing expenses such as mortgage payments or car insurance.
Source: CIA 86-92 Aggregate Table & Commissioner’s Disability Table A