The rise in the number of women in the workplace has led to an increased need for disability insurance coverage. Women are three times more likely to become disabled on the job, which makes disability insurance a necessity. In many cases, the definition of disability provided by an employer is too narrow. Disability insurance offers benefits when one cannot perform their primary job. However, it is crucial to read and understand the fine print, as there could be conditions that stop the insurance from covering the worker’s needs.

For example, some plans might not pay benefits even if an individual is unable to leave the bed, as they might argue the person could still provide services like talking to clients over the phone. However, a comprehensive personal policy might consider personal interaction with clients a part of one’s job, thereby covering one’s inability to perform these tasks.

The need for disability insurance is further underscored by the fact that many companies do not offer long-term disability insurance, and disability benefits do not usually cover 100% of a worker’s income. Many might think recurring on Social Security Benefits would be feasible, but according to the 1998 Social Security Handbook, the government only provides disability benefits after five full calendar months have passed. Plus, you must be unable to perform any type of gainful employment lasting at least 12 months or expected to result in death to qualify for these benefits.

To evaluate the need for disability insurance, it is recommended to tally up your necessary monthly expenses and subtract any investment income to find out the amount needed to cover expenses in case of disability. After this step, calculate your potential monthly long-term disability payments from your employer alongside your spouse’s take-home pay to determine your disability income. If your expenses in case of disability exceed your disability income, securing additional coverage would be beneficial.