Unexpected medical problems can affect your finances. These could be pregnancy, depression, injuries or recuperation from surgery. If you have any of these, you will have a hard time working for a period of time. There are times you wouldn't even be able to work at all.
If the latter happens, how would you pay your bills? If you have a family, how would you support them?
This is the very reason why more and more people are opting for individual disability insurance. They are preparing themselves for that situation. If that does happen, then they are prepared.
Individual disability insurance replaces a percentage of your salary if you become an invalid or disabled. Either way, you cannot work. If you don't have this, you may spend your savings. You might even dig into your retirement fund or what you've allotted for your children college fees.
Having an individual disability insurance means you don't have to get the funds from your everyday expenses to pay for your debt. You can still earn even when you're not working.
This is the very reason why employees work for corporations that offer this kind of benefit. They see the individual disability insurance as some kind of health plan. It's better to have it and not need it than need it and not have it.
At least with the individual disability insurance, one does not have to worry where to get the finances to pay for the mortgages, daily expenses, and other bills - even when one is not working.
But before you sign up for any individual disability insurance from an insurance company, you should be smart enough to get the facts straight. Make sure what their coverage is and how many percentage they would get from your salary.
If you are comfortable with their policies and believe that you will not be in the losing end, then go for it.
You can also speak to a licensed financial professional to guide you in this agreement that you will make. Have him explain the benefits and policy provisions.
Since this will involve a deduction from your payroll, you should know where your money goes right? If there are exclusions in the contract, check which ones apply.
If the policy gives you with the basic hospital needs in addition to the individual disability insurance (some insurance companies do that), check whether they are offering the basic medical insurance or major medical insurance.
You wouldn't have a hard time determining this because it is already indicated in the policies.