2 Reasons Why Private Disability Insurance Is Worth It
If you have never thought about purchasing private disability insurance, then you might not really think that there is a point in purchasing this coverage. You could assume that the chances of you becoming disabled are low, or you might be thinking that you can count on Social Security for disability coverage in the event that you are disabled. Even though SSDI does provide valuable income replacement for many people, you may still find that private disability insurance is worth it. These are a couple of reasons why you might want to purchase this coverage.
1. You Can Better Replace Your Income
First of all, you should think about how much of your income you will be able to replace if you become disabled and rely on SSDI coverage. In 2014, the maximum amount of money that a person could receive was $2,642 a month. The average monthly benefit was $1,148. The amount of money that you can receive from SSDI varies based off of your lifetime earnings, but a lot of people find that the benefit is not really enough for them to live off of. If you would need to replace a higher amount of income in the event of a disability, you might find that private disability insurance will be a better choice. Depending on the policy that you purchase, you might have a lot more coverage and may be able to receive a significantly higher benefit for you and your family to live off of.
2. It's Often Not as Strict
If you have ever known someone who suffered from a disability, you might have heard of him or her having a hard time getting approved for disability benefits. In some cases, getting approved can be tough. For example, to receive disability through SSDI, you have to prove that you are unable to work any type of job, not just the type of job that you are used to doing. However, with private disability insurance, depending on the policy, you may just have to prove that you can't work your current job, not that you can't work any job at all. You might just find that it's easier to get approved for private disability insurance benefits, so if you find yourself disabled, you might not have to go through as much stress.
As you can see, many people find that private disability insurance is completely worth the cost. If your employer offers the option for you to purchase private disability insurance, then you may want to consider purchasing it so that you are protected. There are also options out there for those who own their own businesses or who are self-employed.
