Protecting Your Most Valuable Asset

Disability income insurance protects your most valuable asset-your ability to earn an income. You pay a periodic premium and, in exchange, if you are disabled and cannot work, the insurance company promises to pay you a predetermined benefit amount.

In order to understand the right type and amount of disability income insurance for your needs, you'll first need to examine if you already have some coverage in place. For instance, you may have some form of disability income insurance through your employer. If you do, it may be a good idea to find out if you have short-term and/or long-term coverage, and exactly how long the benefits last. Knowing what coverage you already have in place will help you determine if you need additional coverage to help pay for your home or apartment, automobile(s), utilities, food, clothing, education, etc., in the unfortunate event you ever became disabled.

Likewise, if you're self-employed, you need to carefully examine how a disabling injury or illness could affect you, your family, and your business. Because workers compensation insurance is often confused with disability income insurance, you need to know that workers compensation (required of employers in most states) only covers disabilities that occur while you're on the job. Hence, in order to qualify for benefits, the illness or injury must be work-related.