Disability Insurance Articles
How To Know If Disability Insurance Is Not Enough
2010-07-17
Disability insurance generally pays you a percentage of your income if you become injured and are unable to work for a month or more. It can be difficult to decide how much disability insurance you need to carry, especially when you are healthy and young. In most cases, disability insurance provides the assistance you need while you heal. There are times, however, when disability insurance is not enough to cover your bills or other financial obligations while you are unable to work. There are some things you can look at when you are trying to decide if disability insurance is enough or not.
Create a Detailed List of Expenses
The first step in making your decision about disability insurance is to create a detailed list of your regular expenses. Include everything that you usually pay for during a normal month. Make sure that you list groceries, gasoline, clothing, and entertainment as well as your utility bills. Once you have a realistic idea of how much money you need to maintain your current level of comfort, you will know how much coverage you would need if you suffered from a disability that kept you away from work for a lengthy period of time. If you discover that disability insurance is not enough to maintain your way of life, there are several supplemental options that you can purchase to help increase the amount of money you would be offered in the case of a long term disability claim. Research your options completely while you are still healthy.
Consider Your Age
The younger you are, the higher the odds are that you could experience some sort of disability during your working years. As you get older your chances for injury decline because you have fewer years left as a member of the work force. In general, one out of five workers age 20-30 will experience an injury that will keep them home from work for more than a month. Even if your company's disability insurance is not enough to pay all of your bills, it is a good idea to sign up for it. Every amount of insurance will help a little bit if you find yourself in a disability situation.
Short Term Disability Limitations
When you have the option to choose long term disability coverage instead of short term disability coverage you should take advantage of it. Short term disability provides limited coverage for a short period of time before it stops paying you anything at all. The chances are that a disability that keeps you home for more than a month will probably impact your life for far longer than a short term disability insurance policy can handle.