6. Long-Term Disability Insurance
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Long-term disability insurance protects you from loss of income if you can’t work for a long period of time due to an illness or injury. Don’t think a permanent disability could sideline you and your ability to work? According to the Social Security Administration, just over one in four of today’s 20-year-olds will become disabled before reaching age 67.
Those odds are too high for you to skimp on long-term disability insurance. If you’re in your prime wage-earning years, a permanent disability could potentially derail your dreams of home ownership or paying for your kid’s college.
Main Concern: make sure you’re covered. Many companies offer long-term disability insurance to their employees, so start there.
As you look into your options, you’ll also find short-term disability insurance designed to fill in income gaps caused by an illness or injury that keeps you out of work for three to six months. That’s insurance you can skip—especially when you have a fully funded emergency fund to cover your needs.
