Many people in Colorado are not aware of the importance of purchasing disability insurance. The earning power is perhaps a person’s most important assets and thus, having protection on it is critical to ensuring that your life is not heavily damaged during times of severe illness or injury. Thus the following includes further information on what disability insurance is and its importance in one’s life.
What exactly is disability insurance?
Although the name usually speaks for itself, there are many more details about disability insurance that people need to know about. Disability insurance basically provides you with temporary financial security during times of severe illness or after you’ve sustained an injury. Disability insurance claims are scrutinized, much like any other type of insurance. They will look at your current income and other sources of income you have coming in. In many cases, the insurance company will provide you with between 60 to 80 percent of your normal monthly wage.
Common financial mistakes
Perhaps the most common financial mistake made by people is not obtaining disability insurance. Some will say that their job isn’t dangerous and thus don’t see the importance of paying additional insurance per month. However, research has shown that over one-third of employees will be disabled for at least 90 days at some point in their working lives. This is often enough to disrupt a person’s financial foundation, much of the damage being so severe that a person may end up losing their home.
Although the initial choice to purchase insurance is recommended, it is also advised to closely look at the fine print of your insurance plan. This can be a complex matter, and an experienced attorney may be able to help.