People usually insure their cars, homes and other material possessions. Nobody likes to think about what life would be like should they become disabled. When disability strikes, many people are no longer able to work and to earn income. The loss of income might force you to declare bankruptcy or foreclose on your home. Disability insurance will protect one of your most valuable assets: your income.
Your chances of becoming disabled at some point during your working years are higher than you'd expect. If you could not afford to live without your income then you may want to consider purchasing disability insurance. Disability insurance is designed to replace a portion of your income on a tax-free basis should a disability prevent you from earning an income in your occupation. A typical plan will replace anywhere from 45-60% of your salary. Individual policies and supplemental plans will often cover up to 80%. Benefits usually last for several years or until you retire. This way you will still be able to maintain your standard of living even if you are out of work.
Disability insurance policies come in two flavors: long-term disability insurance and short-term disability insurance. The policy you choose should be tailored to your individual situation. A qualified insurance agent can help you determine the amount of protection that is right for you.