As an insurance agent, I believe in the importance of the products we offer and today’s topic significantly impacts many people’s decisions. Many people operate under the assumption that insurance agents continually push for more sales. However, the truth is that agents are more focused on securing a sale than overloading consumers with unnecessary insurance options.

One of the most under-sold insurance products is disability insurance, despite it being critical. It is pertinent, especially considering that a disability of one of the main borrowers is the leading cause of home foreclosure. Insurance of our homes is a given as our homes are, in most cases, our largest asset. However, the concept of disability insurance seems to be lost on some people. We insure against loss of property, but we forget to insure the ‘money machine’ - ourselves.

It’s like owning a car that is inoperable but still requires maintenance and insurance coverage. Becoming disabled can disrupt our vision of having a safe and secure home for our family.

Understanding the options available for disability insurance is necessary. ‘Long-term disability insurance’ refers to policies that last up until we qualify for Social Security benefits whereas ‘short-term disability’ covers consumer loans like auto loans and credit cards.

There are two basic types of disability products, namely, one that’s cheaper to get initially but becomes costlier as we age, and another that has a higher cost initially but has a constant premium throughout the policy period. Both products come with a clause called the elimination period which is essentially how long one can wait to receive benefits. The longer the elimination period, the lower the premium.

Additionally, all disability policies are occupation-rated, meaning individuals with jobs that are more injury-prone, such as a coal miner, will pay more for the same benefit than someone with a lower-risk job, such as a office worker.

A crucial point to remember is that these benefits, like life insurance, are received tax-free. This further emphasizes the importance of considering disability insurance.

When considering whether to invest in life insurance, you should think about the future of your family should something happen to you. Term insurance, the most common type of life insurance, provides benefits to families if one of the borrowers dies.

When thinking about insurance, it’s crucial to understand what is not covered in your policy and how you can get additional coverage. While purchasing less costly insurance may seem appealing now, investing a bit more can provide increased security for your family’s future.

Bob Hollick is an insurance agent at State Farm based in Washington. He encourages potential customers and current policyholders to understand the importance of having protection for the unexpected.