Disability insurance isn’t for people who work in an office . . . right? The statistics say otherwise. It’s not on-the-job accidents that cause the majority of disabilities that prevent people from being able to work – it’s illness!
Your emergency fund should be able to cover three months of expenses – but what if you are out of work longer than that? One in four people who are in their twenties today will be out of work for at least a year due to disability at some point in their lifetime. That’s something that most of us don’t have stashed away, which is why disability insurance is so important!
“Long-term disability is mandatory. You’ve got to get it.“ – Dave Ramsey
What type of policy should I get?
Dave Ramsey recommends purchasing a policy that will replace 60-70% of your income (you can reduce this amount over time as you pay down debt and build up savings). If a policy that lasts to age 65 is within your budget, that is the best option. Otherwise, Dave suggests opting for a policy with benefit period of at least five years. The reason for this is that 85% of disabilities are resolved within that timeframe, so you’re unlikely to need it beyond that point. He also suggests taking the longest elimination period within your budget and avoiding all the bells and whistles the insurance companies will try to sell you on.
How do I find a good policy?
Whether you work on a construction site or an office, disability insurance can be the difference that determines whether you’re able to continue paying bills and putting food on the table. At Zander, we’re committed to helping you find the right long-term disability policy for your needs. Get a free, instant quote at the link below or give us a call at 1.800.356.4282 to protect your most valuable asset.