The Differences Between Health, Disability and Life Insurance
April 26, 2012 1 Comment
When you get older, earn that company position, or start a family, you’ll notice that your life is hanging in the balance by very thin threads. With so much uncertainty, a little peace of mind can help you to enjoy life, rather than fret over every little thing. This means purchasing insurance.
But what types of insurance are appropriate for you?
Obviously, the law demands that you get car insurance in case you are involved in an accident with another driver that harms them or their vehicle. But there are also health, disability, and life insurance plans available as well. Which do you need, what are the differences, and why should you purchase them? Let Got DI explain.
Health insurance pays for your medical expenses should you wind up in an accident. Because even simple procedures can exceed thousands of dollars, this is vital to reducing those costs. If you have the extra income, are involved in high risk activities, or have a family medical history, we recommend health insurance.
The most often overlooked of the three, disability can often be the most important.
Let’s pretend you are badly injured in a car accident. Health insurance will pay for most/all of your medical bills, but what happens if you cannot return to work? You will lose income, be unable to pay your mortgage or rent, and have expenses pile up without the ability to earn money.
Disability insurance pays you a percentage of your wages for time off work while recovering from a disability. This allows you to stay up-to-date on bills and save for the future when you re-enter the business world. If you have a family or high-paying career, this is crucial.
Life insurance pays out money to your loved ones in the unfortunate event of your death. Nobody likes to think about dying, but you don’t want to think about your family starving should you perish in an accident either.
Of all three, life insurance is the one you might be most capable of suspending until you reach a later age. You will need to purchase a plan sometime, but you hope it will not be relevant for decades upon decades.
You can read more of the benefits of each service by visiting their dedicated pages, but they are all quite helpful. It may seem like a waste of money to invest in an event that may never occur or be relevant, but it is comforting to know you have protection nonetheless.
Check out this previous blog from Got DI about basic disability insurance terms.