Consider disability insurance

Spring brings an increase in injuries due to warm weather activities, which is why May is Disability Insurance Awareness Month.

How long could you and your family go without a paycheck? One week, two weeks? A month ? How about a year? Stop and think about how dependent we all are on our paycheck.

We do not hesitate to insure our cars, homes, motorcycles or boats. Then we ignore the very thing that pays for them – our ability to work.

Injuries at work hopefully will be covered by workers' compensation. Some employers provide disability insurance. Self-employed people are on their own.

So what do you need to consider when purchasing disability insurance?

How much savings do you have? The longer you can wait before needing benefits, the lower the premium.

How much income will you need? Benefits from a disability policy are not taxable, so that helps. What bills must I pay? What can I eliminate – mortgage? No. To-go coffee? Yes. The more income you need, the higher the premium.

How long do I want to provide benefits ? Policies are usually written with three or five-year benefit periods. Some go to retirement age. The longer the benefit period, the higher the premium.

Let's talk about work benefits. When do they begin? Do they cover you when you are hurt while away from work? How much per pay period do they pay? How long will they pay? You need the answers to these questions before you shop for disability insurance.

Let's talk about occupation. The type of work you do is going to affect the premium. Occupations are separated into classes – least likely to be injured to the most likely. Some occupations are uninsurable.

What is a disability? Every disability policy is going to have a definition of what a disability is. They are not all the same. Are you disabled if you can't perform your occupation or any occupation?

Social Security pays disability benefits to people who can't work because they have a medical condition that's expected to last at least one year or result in death. Not all people qualify for benefits.

Disability insurance is complex and may be the reason most people do not have sufficient coverage. Relying on work benefits and government programs is not a good solution.

Disability insurance is an insurance product that promises benefits in the future. The company you purchase it from should have ratings that demonstrate those promises will be fulfilled.

Shopping for disability insurance requires you to ask questions about the policy and the company providing it. It will not be easy, but protecting your most valuable asset will be worth the effort.

Bob Hollick is a State Farm Insurance agent based in Washington. His column appears every other Friday in the Observer-Reporter.