Everyone by now has been exposed to the duck selling disability insurance on T.V. But the message is clear: how will you pay for important bills such as rent, mortgage, utilities, groceries, etc., if you are hurt and unable to work? Whether you are single and living alone or an important breadwinner for a family you should have a short-term disability plan ready and at your disposal.
The Importance of Short Term Disability
Short term disability is extremely important for families for obvious reasons. A major source of income will be lost if one of the working parents is injured or sick and cannot work full time. But food still needs to be put on the table and the children always need new shoes and clothes. In today’s society where many families have two working parents, the other spouse can at least try to make up some of the lost income by working more or finding a second job. But without income replacement insurance it will be a hard row to hoe indeed to make up two full-time incomes.
Short Term Disability Plans are Not Just for Families
Single workers are also prone to financial devastation when severe injury occurs since there is no one else to make up the lost income. Included in this category are single mothers and fathers who live alone and have custody or share custody with children.
A Closer Look at Coverage and Options
Income replacement insurance such as short term disability is a temporary relief, usually limited from about three to twelve months. The income replaced may be only half or up to two-thirds of full time salary, but most people receiving disability find that some expenses are reduced anyway such as entertainment or travel and transportation.
Most larger companies offer disability insurance as part of their benefit package, but in many cases the benefit is optional. With group disability rates being the lowest possible for this type of insurance, there is no reason to opt out. Take advantage of your company’s willingness to help pay for your income replacement insurance. Always opt in for short term disability.
Tags: disability insurance, income replacement insurance, lost income, short-term disability plan