Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about What Is Disability Insurance? and other Disability Insurance topics.
While some people may be surprised, life and disability insurance are actually closely related. Why? These two forms of insurance are both designed to protect your future earnings. The rather significant difference in their language and outward appearance often causes some confusion about their strong connection. However, this lack of understanding sometimes results in serious “gaps” in coverage.
While most professionals are aware of the need for adequate life insurance coverage to protect their families in the event of their demise, many neglect to purchase sufficient disability insurance to achieve the same important goal. This is particularly curious since the statistics of disability indicate that, particular in your younger years, you are much more likely to suffer a disability than you are to pass away. Actually, while death is a certainty at some point and injury or illness may never plague you, the likelihood of disability is strong, but the mortality statistics indicate that death typically comes at the end of your primary earnings years.
Therefore, it appears to be more important to have strong disability insurance coverage than a good life insurance policy, particularly when you are younger. In addition to being highly skilled with your hands, you are also the beneficiary of a highly trained and effective mind. Many respected experts would caution you to insure yourself against mental health disability as well as a purely physical impairment. The sometimes negative effects of stress on professionals are well documented.
The best plan would seem to be to match this relationship with life and disability insurance to create an adequate package of protection to protect you and your family against a loss of earnings while you are still young with a good medical history.
Refer to your insurance policy contract for specific information regarding your coverage and for actual terms, conditions and exclusions. The above statements are general in nature and may or may not reflect the actual terms of your insurance policy.
|Jennifer Mathes, Ph.D.|