Michael is a 24 year old strong, dynamic and outgoing individual. Who would have thought that he is now limping due to a fall? The impact of Michael’s physical condition would have been less if he is covered by a Disability Insurance Benefit. But what if he’s not?
Studies show that a 20-year-old worker has a 3 in 10 chance of becoming disabled before reaching retirement age. This only proves that whatever precautionary measures you take, chances are once in your life you will experience disability.
At this point, I have devised the following guidelines on Disability Insurance:
- Give primordial importance to your health.
- Do not get policies which only pay in case of complete disability.
- Consider the best elimination period that suits you. Every one should have a least 6 to 8 months reserves to embrace monthly expenses.
- Policy must not be “non-cancelable”. You must also ascertain if you can obtain premium waiver in case of increase in premium payments.
- Get a policy as soon as possible.
The foregoing guidelines are not ultimate gauge of having the best insurance. Of course, it depends on your need and preference. These are only the initial steps.
As the saying goes, “prevention is better than cure”. It is better to think of the future now before it is too late. Prevention not from disability but from financial shortage due to disability is what I’m driving at. Inevitable events do happen and when they do it’s better to be prepared.