Other Disability Income Sources
Private programs are another important source of disability income. These may be offered by a union group, through your automobile insurance policy for an auto accident, or through credit disability insurance, which makes monthly loan payments when you are disabled.
Individual Disability Insurance
Despite these wide-ranging disability income sources, a disproportionately large number of people don’t have any disability insurance or are vastly under-insured. If your income stops when your ability to work stops, then putting disability insurance in place is absolutely essential. Even if you can rely on disability benefits from your employer, the government, or another source, you still need to determine whether the monthly benefit would be enough for your needs.
You can make this calculation by adding up all the benefits you are entitles to under various programs and any other asset sources, such as your savings. If this amount approaches your required income after taxes, then you would be able to pay your day-today bills while recuperating from a disability. However, if the total amount of your benefits – plus your own resources – is not close to your income needs, you should consider buying additional disability insurance.