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Disability Requires New Source of Income

Disability income replacement is something that no one wants to think about because it would mean that people would also have to think about the possibility of disability. Although the majority of the population chooses and tends to believe that disability--especially unexpected disability--will never happen to them, the numbers tell a different story. Disability does not always mean permanent disability, and for this reason, 77% of people aged 25 will suffer from a disability lasting at least sixty days or longer before the age of 65. The percentages remain high, even for people aged 50, who have a 58% chance of a disability before 65. Even when a disability is minor and temporary, it can still have serious effects on a person's life. Without a once significant income, it can become hard--if not impossible--to continue paying the bills, especially large ones like mortgage payments or apartment rent.

Disability Income Options

Disability income is something that everyone should plan for because a disability is difficult enough in itself without having to worry how you will financially survive in the meantime. If you do not have plans for how you will compensate for lost income, you can place not only yourself but also your family and friends in a difficult--and sometimes impossible--situation. You will be asking many of these people to help you physically while you deal with the new disability, and asking them to strain themselves financially, as well, is often placing too much of a burden on them.

To provide disability income, regardless of how long the disability lasts, there are a number of options for disability insurance. One interesting possibility is mortgage income insurance. A home mortgage is often people's most significant monthly expense, and losing a primary income can make it impossible to continue mortgage payments. Mortgage income insurance prevents disabled people from losing their home by covering the mortgage payments after they are disabled for a prior-specified amount of time. Depending on how much of a premium you can and are willing to pay, your mortgage income can start as soon as a month after disability and last up to the age of 65.

A more common form of disability income is general disability insurance. There are many options and possible combinations with this kind of insurance, as well, so you can insure yourself until the age of 65 or only for one year, if you choose. You can also choose how much coverage you will need to stay afloat financially and how long before the income payments start. Because there are so many ways to obtain disability income, it is important to consider the situation and make crucial decisions before a sudden emergency arises.

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