Disability Insurance: Definition, Why You Need It and How to Get It

Disability insurance is an important component of your overall financial planning efforts. You are more likely to become disabled than to die during your working years, disability insurance can help ensure that you can maintain your lifestyle.

March 22, 2019 | By Roger Wohlner – The Street

Disability insurance should be a key part of your overall financial planning. Insurance is designed to cover losses that are too big to cover with your own out-of-pocket funds. Life insurance provides a benefit to your beneficiaries should you die. Health insurance covers the cost of medical care should you or your family need it. No less important is disability insurance that covers lost income in the event that you are unable to work due to a disabling injury or illness.

What Is Disability Insurance?

Disability insurance could also be called “income insurance.” Disability insurance provides an income stream in the event that you are unable to work for periods of time ranging from short-term to long-term. Disability insurance differs from other forms of insurance like medical or life insurance in that it is specifically designed to replace a portion of your income in the event that you are unable to work for a period of time due to an illness or an injury.

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