Disability insurance can protect you from unthinkable

April 10, 2019 | By Terry Savage | Chicago Tribune

Income tax time brings you face to face with the amount of money you earn — and have left to live on, after taxes. But what if you were disabled and couldn’t work? It’s something no one wants to think about: being incapacitated. But consider the odds.

The Disability Insurance Resource Center says that for a 32-year-old, a serious disability (three months or longer) is 6 1/2 times more likely than death. It also notes that only 3 percent of mortgage foreclosures are caused by death, while 48 percent are caused by disability.

The average disability lasts two to four years, but some people are disabled for life. And that’s where disability insurance comes in. There are basically two ways to purchase disability insurance.

Disability insurance may be offered as part of a group benefit provided by your employer or purchased independently. It costs less when purchased through a company benefits plan, and premiums are usually paid with pretax dollars.

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