You might not like to think about it, but the reality is that disabilities are far more common than you probably realize. According to the CDC, 1 in 4 adults in the U.S. are living with some form of disability. Your risk increases as you age. So even if you feel healthy now, an unexpected accident or illness could prevent you from working – temporarily or even permanently.

Disability insurance helps safeguard your finances by replacing a portion of your income if you get injured or sick and can’t work. Most policies will pay out after you’ve been unable to work for 90 days (known as the elimination period). The funds can be used to pay your mortgage, utilities, medical bills and anything else you normally cover with your earnings. 

Take Susan for example. She’s a 40 year old marketing manager making $80,000 per year. She never thought much about disability insurance until she slipped on ice and broke her leg. Due to complications, it was nearly impossible for Susan to work for 6 months. Thankfully she had disability insurance which paid out $3,000 per month. This allowed Susan to keep paying her bills without dipping into savings or racking up debt.

Disability insurance gives you the peace of mind that one health issue won’t upend your finances. Be sure to get quotes – it’s usually affordable, costing just 1-3% of your annual income depending on factors like your age and occupation.