That is why all women should consider getting disability insurance

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Disability insurance protects your salary in the event that you are unable to work due to illness or injury. But if you are a healthy person in general, you may feel that you do not need it. In this column “Financially understood woman”.we talk to Rachel Burns, CFP and founder of True Worth Financial Planning, about why all women – even healthy ones – should consider getting disability insurance.

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What are some of the reasons why women need disability insurance during their working years?

One in four women has a disability, so the chances of becoming disabled due to illness or injury are simply too high to ignore. For most people, the loss of income due to disability would be financially devastating and the impact could last a lifetime. Not only will they not be able to cover their current expenses, but they will also not be able to save for retirement. Single women are at greater risk because they have no income for their husbands to return to.

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What are some common misconceptions that women have about disability insurance?

  • The chances of becoming disabled are low. One in four of today’s 20-year-olds will be out of work for at least a year at some point in their careers due to a disabling illness or injury.
  • They could still do their “desk work” if they get hurt. People often forget that many injuries are caused by disease, not injuries. Even if your work is not physically demanding, you will still not be able to do it if you are seriously ill.
  • Their family member will take care of them. Even if there is someone to take care of them, they will probably still have to cover their own expenses. In addition, it is unlikely that a family member will be able to provide round-the-clock care without jeopardizing their own finances.
  • They will receive disability benefits through social security. Disability benefits through social security are surprisingly difficult to qualify and usually pay only between $ 800 and $ 1,800 a month.
  • Their existing group coverage is sufficient. Some assume that they have a group policy through work, that they are adequately covered. However, basic policies may not be enough to cover their needs, depending on their situation.

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How can women determine if the coverage provided by an employer is sufficient?

They should receive a copy of their policy and check for the following details:

  1. What percentage of their income is covered? In general, disability insurance will not cover more than two-thirds of your salary, so you need to determine if this is enough to cover your needs. Remember that in addition to covering your normal expenses, you may incur new expenses due to your disability, such as renting home care, remodeling your home to make it wheelchair accessible, and so on.
  2. How long is the waiting period? The longer the waiting period before you can start receiving benefits, the more money you need to set aside to cover your expenses in the meantime.
  3. How long is the compensation period? Some policies provide income no matter how long you have been disabled, and some only cover a certain number of years. It is important to have a plan for when your coverage ends if you have permanent damage.

What else do women need to know about disability insurance?

Potential damage is one of the biggest threats to your financial future. It is even more important for single women to have a disability plan, as they do not have a husband’s income to benefit from.

GOBankingRates wants to enable women to take control of their finances. According to the latest statistics, women hold $ 72 billion in private wealth, but fewer women than men believe they are in “good” or “excellent” financial status. Women are less likely to invest and are more likely to have debts, and women are still paid less than men in general. Our Financially Understanding Woman column will explore the causes behind these inequalities and provide solutions to change them. We believe that financial equality begins with financial literacy, so we provide tools and advice to women by women to take control of their money and help them live richer lives.

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About the author

Gabriel joined GOBankingRates in 2017 and brings with him a decade of experience in the journalism industry. Prior to joining the team, she was a full-time writer-reporter for People Magazine and Her work also appeared in E! Online, Us Weekly, Patch, Sweety High and Discover Los Angeles, she was featured in Good Morning America as a celebrity news expert.

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