Dear Sharon:
I just read your piece on the importance of disability insurance. I am 66 but I still need to work because Social Security and my pension don't cover my expenses. Do you think I need to get disability insurance? --Judith
Dear Judith:
Disability insurance helps to replace income that is lost if you become unable to work because of an injury or other medical problem.
To determine if disability insurance is right for you, start by learning the benefits that disability insurance will provide (how much money you will receive when you need it), and how much it will cost you to purchase a disability insurance policy.
For Disability Insurance, Contact a Broker
When researching insurance policies, insurance brokers are a good place to start. Unlike insurance agents, who work for an insurance company, insurance brokers are independent and can sell many types of policies, so they can give you more options. Brokers earn their fees from insurance companies so you won't pay a fee for their services. And an insurance broker will be your advocate if you have a problem with your policy.
Talking with several brokers will give you the widest range of disability insurance policies to choose from, and you can choose the broker you feel most comfortable with. Look for a licensed insurance broker who listens to you and answers all of your questions. Take time to consider all of the options and don't let anyone rush you into making a decision.
The Bottom Line on Disability Insurance
Your insurance broker can tell you which disability insurance policies are available to you, and how much each policy will cost. Then you can look at your budget to decide what you can afford-and if the benefit of disability insurance is worth the cost.
Take Time to Make the Right Decison
When making an important financial decision like this, discuss your options with a trusted friend, family member or financial adviser to make sure you considered all of your options, the pros and cons, and made an informed decision.