What is Disability Insurance?
It is well known that the largest asset you have to becoming financially independent is making good use of your income. From your income you are able to pay down debt, invest in property, purchase stocks and buy mutual funds. As a result, it is critical that you preserve your ability to have an income to help you meet your financial goals. If you lose that income then you find yourself in a large financial disadvantage and not able to reach your estate planning goals.
One of the tools at your disposal is to secure a form of disability insurance. Disability insurance is similar to many other forms of insurance. You purchase a plan and make monthly payments to keep the policy active. In this case, if you lose your income due to physical injury the disability insurance policy kicks in and pays you in regular intervals to cover the loss of earnings. There are several types of insurance for this type of situation. You can purchase a private policy and pay out of your own wages or perhaps your employer may have a policy already in place as a part of your benefit package. Additionally there are federal and state based disability programs, like Social Security that can aid people in this situation as well.
Purchasing an all-inclusive disability insurance package is a wise decision. While the state and federal programs do provide relief they are not nearly enough to help you thrive financially and cover all of your medical expenses during your injury. That is why it is critical to consider getting your own policy to cover any loss of income that may come about as a result of injury. This is important because as mentioned previously, your is your greatest asset when it comes to achieving financial independence. You should consider adding this type of policy to your financial planning so that your estate remains secure in the event of a loss of income.
In closing, there are many strategies available to individuals today to make sure they are making progress towards their financial goals. People need to save, invest, buy rental property and pay down debt. Having an income that is consistent and reliable is a large portion of why people can achieve success. Having a disability insurance plan can be an added tool to help you reach your financial goals. Having a meeting with an experienced Tacoma attorney that specializes in estate planning can help ensure that you are on your way to financial success and making progress towards your financial goals.