Agent Owner, Gilmore Insurance Services, Marysville, Washington State
When do you need disability insurance? Quick answer? before you file a claim. The need for disability insurance is going to depend on the value a person places on protecting their paycheck. If they have passive income and money saved or investments they can liquidate, the need for disability insurance may not be that great. For most people though, savings and investments are for a later purpose in life like retirement. Liquidating your retirement assets before retirement simply leaves you with nothing far too quickly. So it is up to the individual to decide the need.
The other thing, don't wait till a disability you recover from shows you the need. Disability insurance, at least good disability insurance, is extremely hard to get. Lots of declines or class ratings for second time around applicants. A second time around applicant is somebody who had something happen before, didn't have coverage and realized how important it really is to have. So they apply in hopes somebody will underwrite them. The problem is, many won't.
Unfortunately when you need disability insurance it is too late to purchase it. You should have disability insurance the moment you start working and earning an income. At that point in your life unless you are independently wealthy, your ability to earn an income is your most valuable asset. Everyone should insure their most valuable asset because it is just too expensive to replace.
.JPG){kind=avatar}
The other thing, don't wait till a disability you recover from shows you the need. Disability insurance, at least good disability insurance, is extremely hard to get. Lots of declines or class ratings for second time around applicants. A second time around applicant is somebody who had something happen before, didn't have coverage and realized how important it really is to have. So they apply in hopes somebody will underwrite them. The problem is, many won't.