There are many people who apply for disability insurance every year. When deciding to apply for disability insurance, you may question whether you really need it.
Among the people who need disability insurance, the most are parents or people who are the sole providers for their families; people who don’t get enough disability coverage from their jobs; people who are in debt; chronically ill individuals; or those who have to work under strenuous conditions.
Read below to find out more about who needs disability insurance the most.
Who Needs Disability Insurance the Most?
In this section, we’ll discuss what kinds of people need disability benefits the most.
Sole Providers or Parents
Having disability insurance is a good idea if you’re the breadwinner of your family because it covers a lot more than your salary. You don’t want to stress out about how your family will manage financially if you become unable to work. Disability insurance protects what you can do to provide for yourself and your loved ones in the event that you are unable to retain employment.
Many parents think about applying for disability insurance to safeguard their families’ financial security. Disability insurance is a must for all parents, but more so for those with young children. Disability insurance is important for everyone who provides for their family, whether it is financially or by other means.
This includes stay-at-home parents, who may need financial assistance if they become disabled and unable to care for their children.
Minimal Employment Coverage
Disability insurance, like health insurance, is something many people can get through their employers. Typically, there are no qualification criteria for group plans, and they might be significantly cheaper or even free when compared to purchasing individual coverage.
Unfortunately, some workers soon discover that the group disability insurance their companies provide is insufficient. While these policies may have cheaper rates, the benefits they provide may be less than generous.
If you are receiving disability insurance through an employer-sponsored plan, you will no longer be eligible for benefits in the event of your termination or a job change. Getting group coverage also means you are unable to customize your plan with things like riders and other add-ons.
Individuals In Debt
People with existing debts, such as student loans or credit card debt, may want to consider getting disability insurance in order to avoid accruing further debt. When you are unable to work due to an illness or injury, your debt situation will worsen as interest piles on and if you fall farther behind on your payments.
If you get hurt or become sick, even temporarily, you won’t fall behind on your bills if your insurance is equal to the amount you pay each month toward your debts.
Self-Employed Individuals
Independent workers, such as consultants, contractors, and business owners, may greatly benefit from disability insurance. When you’re your own boss and become sick or injured, there’s no such thing as paid sick days or vacation.
In addition, those who run businesses of any size should think about providing their workers with disability benefits. When you own a company, the daily lives of your employees are inextricably intertwined with your success.
Chronically Ill Individuals
If you have a chronic or recurring condition, like back discomfort or a hip injury, you should think about getting disability insurance. Although you may be able to handle these issues at the moment, you can never be sure how a chronic illness or injury will affect your future employment prospects.
An injury that keeps coming back can worsen over time and can eventually necessitate surgery. It’s possible that if this happens, you won’t be able to work for a while (weeks to years). If you have an injury that keeps you from working, disability insurance might help secure your income.
Employees in Physically Strenuous Roles
If you have a job that requires a lot of physical exertion or is associated with a higher risk of injury, you should probably give some thought to purchasing disability insurance so that you can protect your capacity to make a living.
If you become ill or injured, it will be more difficult to maintain employment in jobs that require substantial physical activity, as opposed to jobs that involve more sitting at a desk or less walking.
There are a lot of careers out there that demand manual work, and most of them come with a higher risk of getting hurt on the job. Agriculture, construction, and other manufacturing work occupations fall under this category.
If you sustain an injury while doing your job duties, you may be eligible for workers’ compensation; nevertheless, the benefits that you get may be insufficient to pay for all of your medical expenses and other post-accident costs.
When Is Disability Insurance Not Necessary?
Almost everyone who has financial obligations and is disabled should get disability insurance, but there are some who don’t. We’ll discuss three such people in this section below.
Most of Your Income Is Passive
It’s possible you do not require disability insurance if you get a monthly paycheck from sources that do not require you to actively earn revenue.
Rental property income, investment dividends and interest, the repayment of long-term loans, etc., all fall under the category of “passive sources of income” because they wouldn’t be affected if you became disabled.
You Have Enough Savings to Retire
If you’re five years away from retirement and have sufficient savings to ensure that you will not be required to touch your retirement benefits, you generally do not require disability insurance, unless you are unwilling to use up your savings or other liquid assets.
You Make Enough Off Your Business
If you’re the owner of a business that can function without you and continue to pay you as well, then you might not need benefits. This is a riskier strategy because it’s not likely that your business will be able to survive continuously without you, but it’s possible if you are equipped with a trustworthy senior management team and a sustainable business model.
Conclusion
While there is a standard set of criteria for disability applicants, there are some who need disability insurance more than others. If you would like to know your chances of being approved for disability benefits, get in touch with a disability attorney.
