By Daniel Kurt | Fatherly |
From the moment they know a child’s on the way, a lot of parents scramble to take out life insurance that will protect their family should the unthinkable happen. But that other way of safeguarding your paycheck — disability insurance? It tends to be an afterthought.
The fact is, the chances of somebody young experiencing a job-impeding injury or illness is a lot higher than their risk of dying before retirement age. In fact, according to an analysis last year by the Social Security Administration, the average 20-year-old male has a 26 percent chance of experiencing a disability before the age of 65.
Because the report has a fairly high threshold for what it considers a “disability” — a physical or mental impairment lasting at least a year — you can argue the likelihood is actually even higher. That same person’s probability of passing away without ever needing disability coverage: 7.4 percent.
So perhaps it’s time to shake off the perception that disability policies are only for older people or those who work in dangerous careers. In reality, anybody whose family depends on their income should really have coverage.
What to Know About Group Disability Insurance Plans
Only 34 percent of Americans receive disability coverage through their employer, according to a 2017 survey by Harris Poll. But even when it’s not offered free of charge, some employers provide policies that you can buy into – and they’re usually cheaper than the ones you’d find on the individual market.
Read more at Fatherly.