Disability insurance covers estate planning needs during your lifetime
Part of the process of estate planning is preparing for events during your lifetime, not just after you pass. Medical and Financial Powers of Attorney are explicitly for events while you are living, such as an incapacity or any other situation in which you are unable to act on your behalf. One of those events could prevent you from bringing in your normal income.
Disability insurance's purpose is protecting financial well-being during a time you are unable to bring home income.
It replaces your lost wages temporarily.
Most disability policies recover only a portion of a person's lost wages, normally sixty to eighty percent of a person's salary.
That is better than no money coming in when you need it most.
Disability insurance can only be purchased when a person is healthy. It is too late for insurance once you are injured or sick.
Long-term care insurance is very similar to disability insurance by providing coverage when age, illness or an injury requires assistance.
Stat to remember: Social Security studies indicate a 3 in 10 change of a disability before retirement age.
