CAL Financial - Disability Insurance

Why Disability Insurance is Important and Who Should Consider It

Disability insurance is crucial because it protects your income if an illness or injury prevents you from working. Anyone who relies on their earnings—whether you're an employee, freelancer, or business owner—should consider it. It ensures financial stability during challenging times, allowing you to focus on recovery without the stress of lost wages.

Essential Points to Remember

1. While your employer might offer group disability insurance, a disabling event or serious illness that prevents you from working can still lead to a financial shortfall.

2. Disability insurance outside your employer's coverage is customizable, remains with you even after you leave your job, and might be more affordable than you expect.

3. Disability insurance can provide financial support during a prolonged illness or injury, helping you avoid depleting your savings and delaying your other goals.

Who Should Consider Disability Insurance?

In general, anyone who relies on a steady income for daily living expenses can benefit from disability insurance, but it’s especially crucial for certain individuals. Those who stand to gain the most include:

1. Primary breadwinners whose income is essential for ongoing household expenses.

2. Individuals whose essential living costs exceed 60% of their income.

3. Self-employed workers who may struggle to rebuild their client base after time off due to illness or injury.

4. Parents or caregivers with dependents who rely on their income.

5. Workers in high-risk professions that involve physical, mental, or emotional strain.

6. Those without employer-sponsored policies who need their own disability coverage.

Copyright 2024. All Rights Reserved.