Is Disability Insurance Necessary After 40?

Disability insurance can supplement life insurance for those over forty and is a special policy designed to replace your income if you cannot perform your work responsibilities.

The earlier you invest in this plan, the better, especially if you work in a highly physical or risky occupation.

How Does Disability Insurance Work?

Disability insurance provides monthly payments that equate to a portion of your income if you can’t work because of an injury or illness.

The payouts typically amount to between 40% and 70% of your salary and can be used to support and maintain your lifestyle (groceries, mortgages, travel, etc.). It doesn’t cover expenses like medical care or long-term care.

Short-Term Versus Long-Term Disability Insurance

Disability insurance is either a short-term or long-term policy. Short-term disability insurance replaces income for shorter periods, making it ideal for disabilities that only last for a year at most.

Payments only last a few months to a year, and you can receive a payout relatively quickly. Many workplaces provide this benefit to their employees.

Long-term disability insurance, however, lasts for many years–even through retirement, if needed.

It’s often purchased as an individual policy (though you can sometimes get it through an employer) by high-earning individuals concerned about their family’s lifestyle should they no longer bring home an income. 

Please Get In Touch To Discuss Your Disability Insurance Requirements

Do I Need Disability Insurance?

It’s a common misconception that disability insurance is only valuable to those who work in high-risk settings such as construction sites or factories. However, disability claims aren’t exclusive to workplace-related accidents. 

Disabilities can happen to anyone at any job or during their free time. Some people become disabled due to illnesses such as arthritis, heart disease, stress, etc.

Others are seriously injured in accidents, such as a car crash that leaves someone paralyzed. This is why it’s wise to get disability insurance, regardless of occupation.

Do you need insurance if you’re debt-free after forty? Even if you feel secure financially, it’s still good to put some safety nets in place to cover you and your family in the long run.

How Much Disability Insurance Coverage Should I Get?

Calculating how much disability insurance coverage you need will depend on several factors. Before anything else, it’s important to understand that you likely won’t find a policy that will replace all of your income. Most policies only compensate for a portion of your salary. 

A safe way to decide how much disability coverage you might need is to consider your current monthly expenses minus the amount you won’t need when you’re not working (e.g., commuting costs, taxes, etc.).

Deduct this total from your monthly income and other revenue sources. The shortfall between income and expenses is what you should try to secure as a minimum monthly disability benefit.

We Can Help

Every working individual can benefit from disability insurance. This coverage is especially useful for those over forty who need extra security to maintain the lifestyle of those who depend on them should they have an accident or illness that makes it impossible to work.

Contact Insurance Hero today to learn more about your disability insurance options.

Are you curious about the impact of lifestyle changes on life insurance premiums for those over forty in the UK? Don’t miss our latest post.