• 19
  • September
    2011

Although the unpleasant possibility of becoming disabled may be difficult to contemplate, Money magazine reports that workers generally face a 20 percent chance of suffering from disability during the course of their careers. Despite this staggering reality, employers often fail to provide employees with disability insurance or offer coverage that inadequately addresses the needs of injured workers.

In order to ensure that they are protected, should the worst happen, many workers are investing in private long-term disability insurance. This kind of coverage can provide a safety net if workers do not get adequate coverage from their employers, or are not eligible for Social Security disability coverage.

Choosing Private Disability Insurance

If you are contemplating whether you should invest in private disability insurance, consider the following:

  • The policy you choose will be associated with the job that you have at the time that you sign up. If you are thinking about starting your own business at a later time, you should get a policy before you leave your job because it is more difficult to obtain insurance as a self-employed worker.
  • Investing in a private insurance policy with a cost-of-living rider will help ensure that you receive your full benefits, no matter what the economy looks like.
  • As you advance in your career, you should consider increasing the amount of your policy's protected income to reflect any increases in your salary.
  • A non-cancellable policy is a good option because you can lock in your premiums, as long as you pay your monthly bills on time. Other types of private insurance, such as guaranteed renewable policies and return of premium policies do not offer this option.