Most people don’t even think about disability insurance.  

The fact is you are much more likely to use disability insurance than you are to die during the term of a term life insurance policy.  A 25-year-old entering the workforce has a one in four chance of some period of disability before he or she retires at 65.  But how many people have disability insurance?  Not many?  Why?  I think the need is just not well known.      

It’s not about accidents

The most common idea about disability is accidents cause disability.  It’s just not true.  A small minority of disabilities are caused by accidents.  Many more are the result of back issues, chronic health conditions, or chronic pain.

It’s not about riches.

I sometimes hear people who think they will get rich if they develop a disability.  Between Social Security Disability and the disability policy they will have it made…right?  Well, insurance typically only covers about 60% of your base salary.  It’s not about getting rich, it’s about giving you a fighting chance financially.

It’s about having a fighting chance financially

Like any insurance policy, paying in premiums for years and never having a benefit paid isn’t fun.  But if you were to develop a disability how glad would you be that you had coverage.  In addition you can generally get a “return of premium” rider.  Then, when the policy is set to end you get a check back for pretty much everything you paid in.  Does it cost more?  Yes.  But at that point you really didn’t pay much of anything for all those years of coverage.