Why Is Disability Insurance Important? (Loveland, CO)

Why is disability insurance important and why should I purchase it?

Disability insurance is extremely important for most people, especially when you consider how carefully we already insure our physical assets. People understand the importance of insuring their homes, their automobiles, and even valuable jewelry or collectibles. However, many people today have overlooked what is often their single biggest asset: their earning power.

Most of us would never think about going without homeowner's insurance. Yet your earning power will often generate the value of that home many times over during the course of your lifetime. Despite that, many people are completely unprepared for a single incident that could render them unable to earn an income and maintain the lifestyle they are accustomed to.

If you were to sustain an injury that prevents you from performing the job you normally do, the financial impact can be significant. Many people believe disability insurance is only necessary for individuals who make a living with their backs or legs, such as those working in the trades. And while it's true that physically demanding jobs come with obvious risks--such as a bricklayer who injures their back or loses the use of their legs--those exposures are not limited to blue-collar professions.

White-collar professionals also face serious risks. For example, an accountant who suffers a traumatic brain injury may find it extremely difficult to focus on numbers and continue working effectively. Similarly, individuals who rely heavily on fine motor skills--such as doctors, surgeons, or other highly skilled professionals--can be financially impacted by even a small injury to their hands. That type of injury alone can make it impossible to earn the income they're used to.

One of the best explanations of disability insurance compares your earning ability to a machine in your garage that prints $60,000, $80,000, or even $100,000 every year. If you owned a machine like that, would you insure it? Of course you would. That is exactly what disability insurance is designed to protect--your ability to earn an income.

It's also important to understand that workers' compensation only replaces income if you are injured on the job. If you're injured while skiing, traveling on vacation, or driving across the country to visit one of our great national parks, workers' compensation does nothing to protect your income.

Many people also say, "I already have disability insurance through work." In most cases, employer-provided coverage is short-term disability only--typically lasting six weeks, or sometimes up to three months. While helpful, that coverage is limited.

Long-term disability insurance can be incredibly valuable. It can work in coordination with Social Security and other social safety nets available in our country, helping to protect your income over the long term and keep your lifestyle as close as possible to what it was before an injury.

We'd be happy to review your insurance coverage options with you! Give us a call at (970) 667-2145 or visit https://weedinagency.com.