Top Reasons Why You Need Private Disability Insurance

“Try not to associate bodily defect with mental, my good friend, except for a solid reason.” – Charles Dickens, David Copperfield

Are you the only income earner in your family? Or, are you a single parent with one or more children? Finally, are you single and need to support an aged parent or grandparent?

If you answered yes to one or more of these questions, you need to consider taking out private disability insurance. Even if you are not the only family member working, it’s still a good idea to consider disability insurance. The cost of living is currently so high and is showing signs of increasing, not decreasing that it takes more than one person to earn enough money to meet household expenses.

At the beginning of this article, it is also vital to note that, before you take out a disability insurance policy, it is a good idea to make an appointment with an Unum disability claims lawyer to discuss the crucial issues like qualifying criteria, possible exclusions, and who will file the insurance claim should you need to claim against the insurance policy.

What is disability insurance?

Before we look at several of the many reasons why you need to sign up for a private disability insurance policy, let’s consider a concise definition of what disability insurance is:

The defines disability insurance as an income replacement mechanism in the event that the insured becomes disabled and is no longer able to hold down a job.

At this juncture, it is essential to note that there are several types of disabilities, and they can be broadly categorized into physical and mental health disabilities. And, as the quotation mentioned above by Charles Dickens in his book “David Copperfield” highlights, being physically disabled does not equate to being mentally retarded.

In fact, in modern terms, the phrase “mentally retarded” is actually considered offensive. It has been used in this context to describe the worst way physically disabled people have been historically described.

Reasons why you should take out disability insurance

The next point to consider is why you must sign up for disability insurance. Here are several points for consideration:

You and your family need the income

This point is the raison d’etre for, or rationale, behind taking out a disability insurance policy.  As described at the outset of this article, you still need to provide financially for yourself and your family if you are involved in an accident or fall ill and are unable to continue working.

Statistics show that “more than 25% of 20-year-olds will experience a disability for 90 days or more before they reach 67.”

Thus, it is vital to take out an insurance policy that will cover you in the event of a long- or short-term disability.

Social Security Cover is inadequate

Circa, fifty-one million American adults who are currently working do not have any disability insurance apart from the basic cover provided by the federal or state Social Security. And, frankly, it is not enough to cover your family’s needs.

Final thoughts

Additionally, the same statistics quoted above show that only “48% of American adults do not have enough savings to cover their living expenses for three months” in the event of a short-term disability. And finally, about 50% of American adults state that they cannot pay any unexpected medical bills without taking out a loan or even selling something.

Thus, it is reasonable to conclude that private disability insurance is an imperative of modern living and needs to be taken out by all working adults.