The High Cost Of Disability Insurance: Worth It?

Investing in one’s future involves more than just making the right stock pick or choosing the right investment firm. Often, it comes down to be able to ensure a viable income in cases where the worst has come to pass. Insurance, be it from the standpoint of a business owner or as a private individual, is a wonderful way to protect one’s assets. A Disability insurance policy, as with any sort of policy, carries a number of pros and cons, but can generally be thought of as a reasonable way to protect one’s assets in the wake of an injury.

The Pros Of Disability Insurance

Disability insurance, be it long term disability insurance or short term disability insurance, is a good way for any individual to protect him or herself in the event of a major accident or illness that prevents one from making a living. One can easily group such policies under the same umbrella as workers’ compensation insurance or paid sick leave, but the cost is a burden carried by the person insured.

The Cons Of Disability Insurance

Perhaps the largest negative point about disability insurance for individuals is the cost of disability insurance. Policies can be incredibly pricey, over and above those of general sorts of health insurance. Many companies do offer some form of this insurance at a discount rate, but an individual seeking coverage should be prepared to pay for better coverage. One should generally budget about three percent of one’s total income for disability insurance. While this may not seem like a huge investment on its own (after all, if one is making one hundred thousand dollars a year, the payment would only be around three thousand dollars), it can be another insurance bill on an ever increasing pile.

Even if one can handle the cost, one should also be prepared to handle the confusing contractual language of disability insurance. Not everything will be covered under a given policy, and there are a number of different lengths of time one may be covered. Without careful research, an individual can find that they have thrown away a portion of their income on a worthless product.

Insurance is always a risky proposition, but it is perhaps more risky to be caught uninsured. Whether or not this sort of policy is right for you comes down to an individual choice. If you do feel the need to be insured in such circumstances, a wise move may be to get a disability insurance quote.