Determining all of your insurance coverage needs is partly a matter of playing a worst-case scenario ‘What If’ game. For example, what if you get into a car accident, or what if there’s a fire in your home, how would this impact your finances? What level of financial risk are you willing to live with in regard to your health, car and home, for example? 

If you’re recently divorced, acquiring your own insurance is probably one of the many items of your to-do list as you establish your independence and create a plan to protect your finances should something unexpected happen. When you sit down with your insurance agent, be sure to ask about long-term disability insurance and how you could benefit from this type of coverage.

Most people who believe in protecting themselves and their assets by acquiring insurance coverage opt for health insurance, automobile insurance, homeowner’s insurance and life insurance. However, while health insurance will cover your doctor or hospital visits should you become injured or ill, what happens if something unexpected happens and you’re unable to work for several months or even years?
 
If you’re not working, you’ll have no income. Your savings will quickly be depleted, and the bills will accumulate. How would you survive financially? This is the scenario that long-term disability (LTD) insurance covers. Should you wind up unable to work for an extended period due to a back or spinal injury, psychiatric or emotional problem, neurological problem, heart problem, blood disorder, or cancer, for example, LTD insurance would help you pay your every day living expenses while you’re unable to work due to a covered long-term illness or injury.

The money you receive from LTD insurance can be used to pay your every day living expenses, including your mortgage payments, car payments and utility bills. The money can also be used pay for food and clothing, and any medical or rehabilitation expenses not covered by your health insurance. If you suffer some type of injury or disability, this insurance could mean the difference between your long-term financial stability and bankruptcy. 

“When discussing disability insurance, it is important to distinguish between coverage offered through an employer, which is known as group ‘long term disability [LTD] insurance,’ and coverage that individuals purchase on their own, called ‘individual disability income [IDI] insurance,’” explained Brian Leet, supervisor of Individual Disability Income Insurance Sales and Marketing at The Standard, a provider of long-term disability insurance. When looking to acquire LTD or IDI coverage, it’s important to understand that not all policies are alike. Shop around for the best coverage, and based on a recommendation from your insurance agent, choose a policy that provides the coverage and benefits that specifically meet your unique needs.