We all strive to build a financial safety net to protect ourselves and our loved ones against the unknown. Life and health insurance are the most strong pillars in a financial plan. However, most people often forget the fact that the ability to earn an income is a great asset and this remains pivotal when considering building a secure future. After all, how can you plan your future if your ability to work is obstructed?

Disability insurance can be viewed as a way of protecting or insuring your monthly paycheck or income. In the case of not being able to work due to an unforeseeable circumstance, this insurance will help you lead a basic lifestyle. The insurance can be availed in both short and long term versions; the type you choose determines the guidelines or features.

Who must get disability insurance?
Anybody can benefit from disability insurance. More often, disability can cause illness. As a result, it is not just for people who conduct labor-intense jobs. In fact, any individual who cannot cover their financial plans in the absence of an income must get a disability insurance.

High-income earners especially derive the most benefits from this type of insurance. Additionally, this could be beneficial for people who have student loans. Without an income, they can still continue to pay the loan with ease.

Factors to note when getting a disability insurance plan
It is essential to evaluate a few factors and ask a few questions before committing to disability insurance.

Consider the risk
It is imperative to consult several professional insurance agents and assess personal requirements before going ahead with a purchase. You do not want to be paying unnecessary high-cost premiums. Agents are well-equipped to quantify the level and types of risks with several other factors considered. They use certain characteristics to distinguish the possibilities of any risks in each industry.

Get the policy during the early years
As with most types of insurance policies, it is best to apply for disability insurance when you are healthy. Most insurance companies require the applicant to undergo a medical review and this can increase the premium cost.

Asses the average income
The net income determines the amount of disability insurance that one can be eligible for. For people with a job or those who have a fixed paycheck, it is extremely easy to understand the average amount required to maintain their lifestyle. However, entrepreneurs may have varied incomes each month. This makes it difficult for disability insurance companies to arrive at a predictable income figure. In such a situation, the tax returns may be used to derive the average income amount.

Period of waiting or elimination
This refers to the period taken to qualify for the first payment post a disability. The qualifying period is used by the insurer to verify the disability and the tenure of it. Typically, most insurance companies take about ninety days. However, it can get longer if you pay a lesser premium cost. It is important to have savings in order to survive those days as you may be eligible for the pay only at the end of the elimination period.

Value-adding riders
While the policy comprises several clauses that cannot be changed, the provider allows some positive changes to the plan offers. People can opt for addition cost-of-living benefits, coverage raise, and benefits that can aid through the retirement phase. However, it is important to carefully go through the rider options and only pick the ones that will bring value.

Price is just one aspect
It is very common to be driven by the price and pick a plan that is cheap. However, you must be aware that the prices are aligned to fit the benefits and features of the policy. Group coverages are often cheaper as compared with an individual policy. While an individual policy can cost anywhere between $2,000 to $3000 per year, coverage for a group of more than ten people can cost anywhere between $300 to $500 per year.

Drop the policy plan post-retirement
After retirement, it does not serve to pay for disability insurance. This is because even if you are diagnosed as disabled, the insurance company will consider you as a retired person because of your age bracket. This means that you will not receive the cash-back amount.

Thus, even if you work during your retirement years, it is practical to drop the policy.