What is Disability Insurance And Why Do I Need It?
Disability insurance provides you with financial cover if you suffer a physical injury that prevents you from working either in the short term or long term.
Having disability insurance is just as important as life insurance, perhaps more so as the odds of becoming disabled are much higher than dying.
According to Comminsure, 1 in 3 Australians will become disabled for more than 3 months before age 65 and have no income. Add to the fact that for every 1 home lost to fire, 48 homes are lost as a result of acquiring a disability.
Suffering a physical injury that prevents you from working puts you and your family under enormous emotional and financial pressure. The loss of income, and no financial back up in the form of disability insurance, can have devastating consequences on your financial security.
To help ease at least the financial pain, having additional Total and Permanent Disability insurance on top of your life insurance, can help you cope financially and maintain you and your family’s quality of life.
Total and Permanent Disability (TPD) cover can be used to pay off your debts, pay for special care assistance, replace lost income or make necessary modifications to your home.
The definition of TPD and the conditions you need to satisfy to receive compensation varies considerably between insurance companies. Before signing up, it’s a good idea to shop around and understand the various TPD definitions and choices on offer so that you can make an informed decision to suit your circumstances.
An injury that leaves you disabled, not only affects your lifestyle but also your family’s life and adjusting to the changed circumstances can be stressful for all concerned.
Don’t let a serious injury or disability leave you and your family financially unstable, talk to your financial planner about securing your lifelong safety net.