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Need for Disability Insurance

Disability Insurance is very important as it protects your ability to earn a living. It pays out a monthly benefit for loss of income because of covered injuries or illnesses.

Social Security System is one of the options. It provides disability income as well as retirement income. If you are working, you may already have this kind of disability insurance.

Another option is worker's compensation that should be provided by the employer. Remember that workers' compensation pays benefits only if your disability is work-related, so it offers only limited disability protection. Moreover, if it does not cover at least 60% of your income, does not pay benefits to age 65 and has a waiting period longer than your savings can last, it is better to consider other options.

So if you think it is not enough you may apply for an individual plan. It is reasonable to purchase this type of coverage if you are self-employed. Individual policies vary greatly but normally insurance companies offer short-term and life-term Disability Insurance. Short-time insurance may range from just a few days to as much as one year. Long-term insurance kicks in when your short-term coverage is out. The coverage you can get depends upon the hazards of your occupation, your physical and mental health.