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Do I need disability cover?
Key takeaways
- Disability cover is essential for any one with working years ahead of them. A disability can take away your most valuable asset – your ability to earn an income in the future.
- Life cover is more important when you have dependants.
When you are young and healthy it can be hard to imagine you could ever be anything else, unless you have seen someone close to you take ill or be injured.
However, the reality is that disability can happen at any age and to any one – even the fittest and most healthy among us can be involved in an accident.
When you are young, you have your whole working life ahead of you Your ability to earn an income into the future is your most valuable asset unless you have inherited or earned a lot of money at a young age.
Most people, however, use their ability to earn over the years to accumulate assets such as a home, a car, retirement savings, and so on.
A loss of income from a disability – permanent or temporary – can set you back for many years or even forever. Expecting family, or the state to provide for you should you be disabled is also not wise, as you cannot count on them being able to support you.
This means the most important insurance cover that you, as a working person, should have in place is disability cover.
Ideally, you should put this type of cover in place when you are young and healthy and before you have dependants.
Life cover is more important once you are in a relationship and/or have children or other dependants who rely on you to provide for them.
Disability insurance is especially critical if you are self-employed and don’t have any sick leave paid by an employer.
