It is often tempting to refuse to think about what would happen if something were to befall you. Between death, accidents and illness, there are many things that can damage your capacity to earn an income and cover the living expenses of yourself and your family. Should an accident happen or a disease strike, you do not want to be left unable to bring in any money to take care of yourself, your spouse and your children. If you had to add the stress of financial problems to the stress and trauma of becoming disabled, you would find yourself in an even more difficult position. It is therefore a good idea to know what disability insurance is and when to get a disability insurance policy.
What is disability insurance?
A disability insurance policy will pay out up to 80 % of your salary if you are disabled and unable to earn an income. This will cover most of your living expenses and enable you to survive should something befall you. Some people are only disabled for a period of time, while others are disabled for life. Depending on the policy that you choose, you could receive cover for the rest of your working life if you are disabled for life. The reason that disability policies will usually not cover 100 % of the individual’s previous salary is that insurance companies do not want to take away the incentive to find some sort of work.
When is it necessary to get disability insurance?
It is a good idea to take out a disability insurance policy before you are disabled. Unfortunately, no one can predict the future and tell if and when they will be disabled and the extent of the disability. Many people who live what is considered to be a low risk lifestyle (for example they do not do any extreme sports and work office jobs) believe that there is a very low chance of becoming disabled and so they do not think it is necessary to get disability insurance. However, the majority of disabilities are caused by common diseases like Diabetes and the like. Therefore, it is important for every adult who is earning a salary to take out a disability insurance policy. However, there are certain individuals for whom a disability insurance policy is absolutely non-negotiable rather than simply a good idea.
- If you are the sole bread winner, or if you earn the majority of your family’s income, you should definitely be prepared for any eventuality.
- If you have children it is essential to have a disability insurance policy to make sure you can take care of them if you are disabled.
- If you have any sort of debt you should get disability insurance.
- If you have a disease like Diabetes it is essential to have disability cover.
- If you work in a high risk, physical job you should have a disability insurance policy.
Again, no matter what age you are, whether you have children or not, and what your health and working environment is like, you should have a disability insurance policy. It is definitely the best way to take care of yourself, your family and your future.
Your monthly premiums will differ depending on your age, health, type of job and income. You should choose a policy that suits your needs and that you can afford. It is also a good idea to go with a company that is reputable, has a range of options to choose from, that offers advice and guidance and that has a happy and satisfied customer base.
Where to find a disability insurance policy
There are many reputable companies that offer a range of good disability insurance policies. The following are some of the most reliable insurance companies.
- Old Mutual
- Hollard
- Outsurance
- Alexander Forbes
- Audenberg
- Swissfin
- All Life