Do You Have Disability Insurance?

Yes, this is Walter with half of his body inside the cat toy drawer.

I’ve been working full-time for my company for a little over 5 years. A few weeks after I quit my previous job, I was home for Christmas, and I had a good talk with my parents about the future.

One of the things they asked me about was disability insurance. I was familiar with other forms of insurance–car, life, health, etc–but I’d never heard of disability insurance.

The basic idea behind it is if something happens to you that renders you unable to work, if you have disability insurance, it will continue to effectively pay you a salary. Not your full salary, but usually enough to pay your core expenses.

For many people, if they can’t work for a month or two, they can tap into their savings to cover the gap. But disability insurance becomes important if you can’t work for a long time–like, if an accident or illness renders you unable to work for years.

So I contacted my amazing insurance agent, Jackie, and I signed up. I hope I never have to use it, but I feel secure knowing that it has my back if something really bad happens. After all, I need to take care of Biddy and Walter.

Why am I talking about this today? Well, a few months ago, a friend’s wife had a stroke. She’s recovering amazingly well, and I think the prospects are good that she’ll be able to work in the future. But in the blink of an eye, they went from a two-income household to a single-income household, and even with solid health insurance covering some of the medical bills, that second income is a big loss. As far as I’m aware, she didn’t have disability insurance.

The situation made me want to share the concept of disability insurance with you in the slim chance that it will help someone who may need it someday. I genuinely mean that. I know it’s not a perfect solution–the whole concept of insurance is that you’re paying for something that you may never benefit from–but I know I’m glad to have it.

Do you have disability insurance? Was your reasoning similar to mine?