You would need Disability Insurance if the loss of your income had a devastating effect on you, your family, or your business. Disability is far more likely to occur than death, and along with someone becoming disabled, there are unexpected bills, turmoil and stress. Disability Insurance will not completely alleviate these problems, but it can certainly help you and others who depend on your income to get through this difficult situation without more scars than needed.
Disability insurance is a way to protect your income if you were to become sick or disabled. If you were unable to work and earn an income because of a sickness or injury, a disability insurance policy would pay you a portion of your income so you could continue to live the lifestyle you are accustomed to.
Think of how much your ability to earn an income is actually worth. If you make $40,000 per year and are planning to work for another 25 years, If you multiply your income by the number of years you will work then your ability to earn an income is worth $1,000,000 ($40,000 X 25 years). The actual figure will be much higher because you will most likely get raises.
The only reason anyone would need disability insurance is the need to protect your most valuable asset, your ability to earn a living. If you are debt free and independently wealthy, there is no need for disability insurance. However, if you work for a living and need that stream of income you absolutely need disability insurance to protect yourself in the event of an injury or illness that disables you. You are 8 times more likely to become disabled than to die. Disability pays up to 70% of your income in order to keep paying monthly bills for your self and your loved ones.
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Think of how much your ability to earn an income is actually worth. If you make $40,000 per year and are planning to work for another 25 years, If you multiply your income by the number of years you will work then your ability to earn an income is worth $1,000,000 ($40,000 X 25 years). The actual figure will be much higher because you will most likely get raises.