Broker Check

Disability Insurance: Protecting Your Most Valuable Asset

| May 21, 2020

When it comes to protection, you can get insurance for practically anything you need or want. From things such as your electronic devices and cars, to your home, health, and life, there are tons of assets that may be worthy of protecting. If you are willing to protect all these different types of assets, or even just some of them, wouldn't it make sense to make sure you are protecting your most valuable asset, which is your ability to earn income?

Disability insurance provides you with partial income so that you can pay your bills if you are too sick to work or an injury prevents you from being able to work. Often you will find that your employer will offer both long-term and short-term disability benefits. If your employer does not offer disability insurance, there are other options available such as individual disability insurance, which can also serve as extra coverage for high earners. Supplemental disability also allows you to add additional coverage on top of your long-term or individual plan, allowing you to protect a greater percentage of your income.

 Did you know?

  • Approximately 40% of full-time workers, or 50 million Americans, do not have any form of disability insurance, and an even higher number have inadequate amounts of income replacement coverage.
  • 3 out of 10 households have experienced one or more cases of disability leave within the past 10 years, with 55% of those households claiming the financial impact of disability leave was devastating.
  • 8 out of 10 that did not have disability insurance, say that they have not fully recovered financially.


What about workers’ compensation?

Workers’ compensation and disability insurance are similar in the sense that they both serve as a form of insurance. Workers compensation is insurance offered through your employer and in the case that you get injured or sick at work, your medical expenses related to the sickness or injury, will be covered and a portion of your wages will also be replaced due to your inability to work. It’s important to keep in mind that workers compensation only covers work related injuries. Disability insurance provides coverage for an injury or illness regardless of whether it takes place in a work environment. 

Insurance is something you may or may not end up using, but the consequences for not having insurance to cover and protect your most valuable asset, could certainly end up outweighing the consequences of paying for it each month. Accidents happen and are usually unpredictable. In many cases, when you need insurance, it’s too late.

If you do not have disability insurance and you are interested in learning more, please feel free to contact our office at 610-251-0670 for additional information.