Disability Insurance
One hundred years ago, the average life expectancy was 46 years. Workers needed life insurance to financially protect their family in case they died during their working lifetime. Today, the average employee's life expectancy is 77 years, yet most people still purchase life insurance before they even thing about long-term disability insurance and long-term care insurance. They don't realize that they have a 300 percent greater chance of suffering a long-term disability before age 65 than of dying before age 65. Advances in medical science have converted yesterday's previous causes of death, like cancer and heart disease, into today's leading causes of long-term disability.
Long-term disability insurance pays the policyholder some percentage of their salary should they become disabled and unable to work, typically because of an illness. Every year about 12 percent of the under-65 U.S. population suffers a long-term disability. Depending on their age, an individual has about a one in three chance of suffering at least one long-term disability (defined as being unable to work for at least 90 days) before age 65.
Premiums are based on your age, occupation and health. Locking in now means lower fixed premiums. The policy, which typically costs $125 to $500 per month may not be cancelled.