Although retirement is a time we can count on happening someday, and disability is something we hope never happens, these two areas of financial preparation are closely related.
Both concern the maintaining of a standard of living, due to loss of income. Rent or mortgage payments, bills, taxes, insurance, and other living expenses, such as food and clothing, will need to be paid for. By planning carefully and being prepared well in advance to cover these costs whether retired or disabled, you will be able to replace your lost income, protect your family, and preserve your estate effectively.
Many people become disabled suddenly and realize that their monthly needs will not be met by their current assets. This is why Disability Income insurance is so important. This type of insurance protects your income by guaranteeing monthly payments after a defined waiting period, whereas social security can take months after you have applied to start receiving benefits assuming you qualify in the first place. Without Disability coverage, you would be forced to tap your retirement savings, which could jeopardize your future financial security. Those who are better prepared for events, such as retirement or disability, will be in far better control of their finances in each situation.