Business
The Motley Fool
Tucson, Arizona | Published: 03.04.2006

Prepare for disability

Q. Is disability insurance worth it? — B. H., Philadelphia
A. Disability insurance can seem expensive, but that's because there's a good chance you will use it. Think of it as income insurance, since it's really all about protecting your income stream, should you not be able to work. We often worry about and plan for death, but we ignore the possibility of an extended period of disability. According to some reports, nearly half of all mortgage foreclosures are due to disability. Data from the Society of Actuaries suggest that at age 35 you have a 50 percent chance of being disabled for at least three months before age 65. If disaster strikes, you don't want to end up wiping out all your savings trying to get by. Even if your employer provides you with disability insurance, do a little research to make sure that it's sufficient. If not, purchase additional insurance. Learn more about insurance matters in general and disability insurance in particular at...

www.fool.com/insurance
www.ahip.org
www.pueblo.gsa.gov/cic_text/employ/lt-disability/insurance.htm.