Short-term disability insurance can benefit almost everyone, especially those who depend on their regular paycheck to cover their living expenses. A minor injury can take you out of work – if you must go on unpaid leave, will your living expenses be covered? Here are some reasons you may decide to enroll in short-term disability coverage:
You Don’t Have Enough Emergency Savings
So, how do you know if you need short-term disability insurance? If you have at least six months’ worth of income in savings and a cushion beyond that, you might be okay without it. However, if you don’t have enough saved up, or if your spouse or partner doesn’t make enough money to support you both, then short-term disability insurance can provide peace of mind by replacing some of your income during a period of temporary disability.
You Want to Supplement Your Existing Coverage
Short-term disability insurance can be used to supplement existing coverage and make sure it meets your financial needs. For example, if your employer offers short-term disability insurance, the coverage amount may not be enough to replace your full income during a period of temporary disability. In this case, you can purchase additional coverage to make up the difference.
You Have a High Deductible
If you have a high-deductible health insurance plan or a health savings account, short-term disability insurance can help cover medical expenses that may arise due to a disability. Since the plan pays directly to you, tax-free, you are free to use the money as you see fit, including covering out-of-pocket costs like copays and deductibles.
Protect Your Financial Stability
Ultimately, short-term disability insurance can be a valuable tool to help protect your financial stability during a time of unexpected hardship. Coverage is important for anyone who wants to protect their income and savings in case they become temporarily unable to work due to a disability, illness, or injury.
Be sure to assess your unique situation and needs before deciding about whether to get short-term disability insurance. A United Benefits Specialist can help you explore your options. Fill out the form below to get in touch.