#TiburcioTipidTips : How Safe is Your Monthly Income from Personal Disability?

personal finance, money management, disability insurance

The Morbid Truth

Yes, it’s another morbid topic.

We’ve talked about life insurance and its different types.

Now we’ll know about another type of insurance which is Disability Insurance.

But before that, let’s imagine a possible scenario first.

Let’s say we know an active-income-producing breadwinner guy who works from Monday to Friday.

Of course, in order to work, he needs to do physical things involving his hands and maybe even his feet.

One day, he gets into a horrible accident and he loses both arms.

So, with his disability, he cannot work on his same job anymore.

Without disability insurance, there will be no more income coming in for him to provide for his family.

What is Disability Insurance?

So now let’s define what disability insurance really is.

Again, taking from Investopedia:

An insurance product that provides supplementary income in the event of an illness or accident resulting in a disability that prevents the insured from working at their regular employment. Benefits are usually provided on a monthly basis so that the individual can maintain their standard of living and continue to pay their regular expenses.

Disability insurance is a great way to protect you and your loved ones from a temporary or permanent disability.

Usually, the Social Security arm of the Government provides this kind of insurance.

To add more to the importance of having disability insurance as protection, did you know that:

  1. The chances of being disabled is higher than having an untimely death.
  2. Sorry for being straightforward but an untimely death in the family will actually bring expenses down. While a disability will typically bring expenses up.
  3. An unmarried person and a married person has more or less equal importance of acquiring disability insurance. Again, because the income is related to the financial goals you have set.

Before You Invest

Invest the time to study and compare different products being offered in the market today.

Determine whether the insurance is a One-time Benefit or Ongoing Benefit.

I would suggest that you opt for the latter, Ongoing benefit / payments. If this is not available, you may ask the insurance company or your financial adviser to set up something that will give you an ongoing benefit.


Because the point of having this kind of insurance is to partially (if not wholly) replace your income.

You would want to get regular and steady payment checks from the insurance provider to at least maintain and help you get through your monthly expenses.

Makes sense, right? Say “Yes!”

Now here’s what I’d like you to do.

Help me and the other readers by leaving your findings about the disability insurance offered by your favorite insurance companies.

This way, we’ll be able to gauge which ones fit our specific needs.

And of course, aside from that, please share this with your friends by clicking the “Like” or “Tweet” buttons located above, on the side and below this article.

Thank you!

To our success in all areas of life,
Argel Tiburcio
Join me on Facebookhttp://www.facebook.com/argeltiburcio

Image source: http://www.flickr.com/photos/rachelcreative/2823000414

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When he is not busy watching "The Office", lounging at the beach, or playing 1st person shooting games, Argel consistently invests in the stock market, both local and global. He loves learning through books, training, seminars, and workshops. He also helps Pinoys create, manage, grow, and protect their wealth as a globally-certified Professional Financial Advisor. Get in touch with him by sending an email to contact[at]argeltiburcio.com

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