Needing disability insurance at some point in your lifetime is not as far-fetched a possibility as you may think. Disability doesn't have to involve a career-ending catastrophe -- it could simply involve a bad accident from which you need several months to recover. If you do find yourself out of work for a relatively short or long period of time, you may find yourself wishing you'd lined up sufficient disability insurance.
Take a gander at the table below. It shows how likely you are to become disabled for various periods of time before you reach age 65, depending on your current age:
| Age Today | For Six Months | For One Year | For Two Years | For Five Years |
|---|---|---|---|---|
| 25 | 35% | 22% | 17% | 13% |
| 30 | 33% | 21% | 16% | 13% |
| 35 | 31% | 20% | 16% | 13% |
| 40 | 28% | 18% | 15% | 12% |
| 45 | 25% | 17% | 14% | 11% |
| 50 | 14% | 12% | 17% | 10% |
As you can see, even if you're 40, the odds are nearly 1 in 5 that you'll be disabled for an entire year. The higher odds for younger people might surprise you, too. (Remember that childbirth and recovery can be considered medical disabilities for women that can last six months or more.) Disability insurance is a dangerous thing to ignore.
We offer more information in our Insurance Center. Get your questions answered on our Insurance discussion board, or just drop in to see what others are saying there. You may not have thought about some other kinds of insurance, such as long-term-care insurance, but they're vital for many people. Take a little time to learn more, and you may be very happy you did, if some calamity occurs in the future.
Here are some additional articles on this important and not-even-so-boring topic:
- Prepare to Be Disabled
- 60-Second Guide to Insurance
- Avoid Insurance Sticker Shock
- Stop Overpaying Your Doctor
- Health Insurance for Your Pet
- How to Insure a Bundle
- Credit Dings = Insurance Woes
You can also learn a lot in our Retirement area, which tackles many related topics.
