People who need disability insurance but don’t have it – Business Insider

January 9, 2023 by No Comments

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  • Even healthy people may need disability insurance due to accidents or other events
  • About one in four workers will become disabled by the time they’re 67
  • Even healthy people may need disability insurance due to accidents or other events

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When my freelance work grew from a side hustle to my family’s primary source of income, I decided it was time to get serious about our finances. So I purchased life insurance, started saving for retirement, and crafted a four-part benefits plan. Yet one thing still worried me: disability insurance.

Disability insurance replaces some of your income if you cannot work. The idea is that you have enough replacement income to cover essential expenses. Usually, disability insurance covers 60-70% of your income, enough to cover your mortgage, groceries, and other non-discretionary costs. There are two types of disability insurance: short-term (for work absences of fewer than six months) and long-term (for absences of 90 days or more).

As the breadwinner in my family, I found myself thinking of disability insurance at unexpected times. I wondered how long I would be out of work if I took a spill and broke my wrist while ice skating with my daughter. Then, when a colleague experienced health issues impacting their ability to work, the need seemed even more pressing.

The more I learned about disability insurance, the more I realized many people (including me) don’t have it but probably should. So here are the top five types of people who should follow my lead and start thinking seriously about disability insurance.


We’re constantly hearing about the ever-expanding gig economy. The acceleration of freelancing and gig work became even more rapid during COVID. There are tons of benefits to being a freelancer, including flexibility and even job security. The downside is you don’t have employer-provided benefits, including disability insurance.

Luckily, there is an answer. As a freelancer, you can purchase your own short-term or long-term disability insurance. Unfortunately, premiums are not tax deductible, and finding a policy for self-employed people can be a hassle. Yet, the …….



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