Numerous life uncertainties make it a brilliant idea to carry life and disability insurance policies, whether bundled or separately. Disability coverage can replace part of the income lost when you’re taken ill or injured, while life insurance guarantees a death benefit payment to your loved ones when you die. Carrying both policies simultaneously is a worthwhile investment for most families.
Why Invest in Personal Insurance?
Insurance is a cost-effective way to future-proof your financial goals for yourself or your family. As you know, unforeseeable events like death, severe sickness, or injury can ruin any long-term plans. Life and disability insurance can help you mitigate these risks and safeguard your future against the unexpected.
What is Life Insurance?
With life insurance, you pay regular premiums to an insurer in exchange for a death benefit payout to your family when you die. Term life insurance provides coverage for a specific duration, such as 10 or 20 years, and is usually the cheapest. Conversely, permanent life insurance only expires when you die and generally costs more. It includes a growing cash value component you can tap into in an emergency while alive.
What is Disability Insurance?
Disability insurance will pay to replace a percentage of your lost income if you cannot work and earn wages after suffering an incapacitating injury or illness. If you purchase short-term disability insurance, you can guarantee the replacement of 40% to 70% of your primary income for 13-26 weeks after injury. The policy usually has a shorter waiting period (the time you must wait before filing a valid claim).
Long-term disability coverage lasts longer, generally to age 65 or 70 years at retirement, depending on your plan. It can replace 40% to 60% of your base earnings and typically includes a 90-day waiting period or shorter.
Why Carry Both Life and Disability Insurance?
You may buy life and disability insurance bundled together or each as a standalone policy, depending on which option is cheaper and easier to manage. Regardless of your choice, having both protections simultaneously is highly beneficial. Statistically, disability or sickness will force 25% of 20-year-old workers out of employment for a year or longer before retirement. If you’re out of work due to injury or sickness, your disability insurance policy can replace a significant proportion of your regular income. Life insurance serves a different but equally crucial financial role—covering your loved ones’ upkeep in case you pass on. There’s no predicting death or disability, and having sufficient financial protection is essential for your long-term stability (and your family’s).
Get Tailored Coverage for Your Unique Needs with Tompkins Insurance!
Life and disability insurance benefits aren’t interchangeable. Both are important for the financial security of you and your family, and each serves a separate purpose. Since financial circumstances can vary widely from person to person, a professional assessment of your specific situation is often necessary to customize these policies. Contact the team at Tompkins Insurance Agencies today to discuss your unique coverage needs, you can also call us directly at 1-888-261-2688.