What To Know About Disability Insurance

Does a sprained ankle from a pickup softball game or a torn shoulder from a house remodel sound familiar????   Typically, those aren’t long-term injuries, but becoming disabled is something nobody plans on or wants to go through  The harsh truth is that it does happen every single day all around the world. Can you ever think of a time where you had a fall or some kind of unexpected accident where you got hurt and it affected your ability to work?

According to the United States Census Bureau, 12.2% of individuals under the age of 65 in Springfield, Mo are disabled. ²

Sometimes we fail to realize how often we take for granted just how dependent we are on a steady income. It probably wouldn’t take long for a person’s finances to dwindle in the absence of a paycheck, unless they already have quite a bit of money saved up.

You may be wondering “does everyone need disability insurance?”, and the simple answer is no. The need of disability insurance really depends on the type of work you do. ¹

For example, a freelance writer most likely does not need to have disability insurance, whereas someone who works in a manufacturing warehouse should probably consider having it because the chance of being involved in a workplace accident is much more likely.  Workplace accidents may also be covered under workers’ compensation.

Some companies offer disability insurance, and some do not. Typically, if you go through your employer, you will find it is a better price with less expensive premiums than if you have to go and find it on your own. ¹

If you find that you don’t think you’ll be able to afford the insurance if it’s not provided by your company, and you believe it is a necessity, there are other options.

The Social Security Administration provides insurance sometimes if you are injured and unable to work for the long-term, meaning you could start getting your Social Security benefits early. ³ This is called Social Security Disability Insurance, or SSDI, which you can learn more about on the Social Security website.

One of the best ways to be proactive is to open a savings account or create an emergency fund with at least three month’s worth of expenses in it. That is if you are single and living alone. On the other hand, if you have children, are the breadwinner of your family, have debt to pay off along with bills, try to save a year’s worth of expenses. ¹

Whatever your situation is, it’s always important to sit down and assess your finances and make sure you have a plan set for if you lost your main source of income. If you are interested in getting a quote, call our office at 417-882-1800, or email us at info@resourcecenterinc.com.

Don’t forget Bruce covers important financial topics every Tuesday at 3pm on Ozarks Live on Kolr10, make sure to tune in and give our office a call at 417-882-1800 if you have any questions.

Sources:

1. https://www.moneyunder30.com/disability-insurance-is-it-worth-it

2. https://www.census.gov/quickfacts/fact/table/springfieldcitymissouri/DIS010217

3. https://www.disabilitysecrets.com/resources/if-my-injury-didnt-happen-work-are-any-benefits-available

4. https://www.ssa.gov/benefits/disability/

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