Many people think about long term disability insurance: when it’s too late. Protect your income and lock in your standard of living while wages are high and sleep better at night. Don’t wait until an injury or sickness takes you down the financial drain.
Long term disability insurance? Why would I ever need that?
Ok. Let’s start with insurance, in general. Take it from a cheapskate – these would be my first thoughts:
- “Insurance? Why would I throw money away every month on premiums?”
- As the head of a household or business, or even as a single person, it is your responsibility (and at the very least, it’s smart business) to be prepared. If you are independently wealthy, you may not need insurance and you can self-insure, but for the rest of us commoners don’t have that luxury, so insurance just makes too much sense.
- Most people go through life oblivious to the risks until something happens. Then the natural response to over-compensate when it’s too late. Don’t be a statistic. Don’t scramble. It ain’t a good look and it’s damn stressful.
- “I’ve already taken care of life insurance and my estate plan. I’ll deal with a disability if it ever happens.”
- Disability can actually be the most debilitating to you. With life insurance and estate planning, you are already gone. If you are alive but unable to work and your family’s finances are ruined, you will actually have to observe the impact every day.
- Long term disability ensures life is good even if you’re hurt. (See the “Jump to conclusions” guy from Office Space) Get a long term disability quote today to see how cheap it could be.
A wise man learns from his mistakes. A wiser man learns from other’s. Don’t be a statistic.
Onward and upward to our five reasons why long term disability insurance is AWESOME.
1. Be that steady ship.
Prepare for the worst weather and you’ll be as cool as a cucumber, no matter what hurricane or tornado comes along. It’s a way better look than begging family and friends for a handout.
Disability is three times likelier to happen than death. If you’re unable to work and perform your craft, money issues start piling up. This intensifies to nothing but a downward spiral, that will not only wreck your finances, but your dignity and morale.
A steady income can go a long way to starting a new career, going back to school, etc. Basically, the world’s your oyster at that point. Sorry for all the marine references here.
2. Long term disability insurance is damn affordable.
If you’re a 25-30 year old, it could be as cheap as $20 a month for $1,500 a month until you’re 65. Cheaper than coffee or smoking habits. Give me a long term disability quote now!
3. The benefits are tax-free.
Since it’s not part of your employer’s plan, your long term disability plan is paid with after tax dollars. Therefore, benefits are tax free, which comes in super handy.
4. Long term disability insurance is portable.
Most employer plans are short term disability only. If they have long term disability, you probably can’t take it with you if you change employers.
The time to lock in is now. The younger you are, the more money you are probably making. When you lock that in, even if years later, you’re in a lower paying job and get injured, you still get the high benefit (usually around 60-66% of your income, tax free). What a deal.
5. Peace of mind is priceless.
But in this case, you can buy it.
Assess your risk for disability today and start protecting your income with long term disability insurance.