According to statistics I read online, thirty percent of people who are currently working will need short term disability insurance before they reach retirement age. While you may think that means the odds are in your favor that you would never need disability insurance, you may be right. But, if something should happen to you, do you have enough money in the bank to take care of your financial obligations, until you are well enough to work again?
Reasons for Short Term Disability Insurance
Even if you lead a relatively risk free life and cannot imagine a reason why you might make a disability claim, you may want to think again. Disabilities come in all shapes and sizes; but, they all can prevent you from adequately supporting yourself or your family. Some examples of short term needs are:
• A difficult pregnancy
• Car accident
• Serious Illness
If you are injured at work, that doesn’t fall under the category of disability insurance. In most cases, the time off from work and related medical expenses will be covered by workmen’s compensation. But, if you are injured or fall ill, and it’s not related to your job, you will be living on savings and credit cards, until you can work again. If you don’t have either of those, you could lose your assets due to bankruptcy.
When the Unexpected Happens
Short term disability insurance is for those times when life happens, while you are making other plans. No one plans to have a difficult pregnancy, a serious fall, be involved in an accident, or become seriously ill. Unfortunately, most people also don’t plan on needing to live of their savings for anywhere from a few months to two years.
For example, my sister became seriously ill last year. As an oncology nurse, she never thought about being the patient. She was always concerned about taking care of others. Then, one day she became the patient and the people she cared for worried about her. Now she is in the process of applying for disability, because she is too ill to go back to work.
Like any other insurance, there will be a monthly premium. But, even though you do not want to pay another bill, carefully consider the pros and cons. Unless you have an emergency backup plan in place, you could be playing Russian roulette with your finances.
You never know when/if you are going to need short term disability insurance. But, the best thing you can do is be prepared. Hopefully, you will never need to make a claim. But, it’s better to know you will have an income to meet your financial obligation, if the unexpected happens