Protect your finances with Disability Insurance

The Importance of Disability Insurance for Financial Security

May is recognized as Disability Insurance Awareness Month, a time dedicated to raising awareness about the importance of disability insurance and the financial protection it provides. This month aims to educate individuals about the risks of disability and the need for adequate coverage. By promoting disability insurance awareness, we can empower people to safeguard their financial well-being and plan for unexpected circumstances.

Life is full of uncertainties, and navigating the twists and turns of everyday life can be challenging. It’s important to secure your financial future by safeguarding with disability insurance. In this blog, we'll dive into the world of disability insurance and discuss the different types available, why it's essential, and how much coverage you need. Mercer Indigo is committed to empowering individuals like you to protect your income and enjoy life to the fullest, no matter what obstacles you may face. Let's explore the benefits of disability insurance and how Mercer Indigo can help you find the perfect policy for your unique needs and budget. 

What is Disability Insurance?

Disability insurance provides income replacement if you become disabled and are unable to work due to an injury or illness. This coverage can help you pay your bills, medical expenses, and other costs of living while you are out of work.

There are two main types of disability insurance: long-term and short-term.

• Long-Term Disability Insurance provides income replacement for an extended period, typically ranging from two years to retirement age. It usually kicks in after a waiting period (also known as an elimination period) and covers a percentage of your pre-disability income. Long-term disability insurance is crucial for individuals who may face an extended period of disability due to severe illness or injury.
• Short-Term Disability Insurance offers income replacement for a shorter duration, usually between three to six months. This type of insurance is designed to cover temporary disabilities that may prevent you from working for a brief period, such as recovering from surgery or a minor accident.

Why is Disability Insurance Important?

Disability insurance is vital for several reasons. Without disability insurance, you risk losing your income and potentially depleting your savings, which can have a devastating impact on your financial wellbeing. Disability insurance provides peace of mind, knowing that you and your family will be financially secure even if you can't work. 

What Does it Mean When a Disability Insurance Policy Has a Waiting Period?

A waiting period is the length of time between the onset of your disability and the start of your disability insurance benefits. Waiting periods can range from a few days to several months.

It's important to consider when choosing a disability insurance policy, as a longer waiting period will generally result in lower premiums.

How Much Disability Insurance Coverage Do You Need?

The amount of disability insurance coverage you need depends on your individual circumstances. Generally, it's recommended that you have enough coverage to replace 60% to 80% of your income.

Current expenses like mortgage/rent, utilities, food and other bills are important to consider when choosing disability insurance coverage. You should also think through any savings or other assets you have that can be used to cover expenses during a disability.

Don't leave your financial wellbeing to chance. Take control of your future today and explore disability insurance options through Mercer Indigo. Our innovative platform and personalized guidance make it easy to find the perfect policy that offers complete peace of mind. So why wait? Secure your income, protect your family and rest easy knowing you’re covered.