It’s been called the "living death." A serious illness or injury that results in a disability can pose risks to a family that may be far more detrimental than the premature death of a primary wage earner. Living expenses are virtually guaranteed to increase, and income is likely to fall.

Much attention is given to owning adequate life insurance, but planning for a possible disability could be of even greater importance. In 2000, the average household had enough life insurance to replace about 35 months of disposable income. Yet one survey found that 82 percent of U.S. workers either have inadequate or no long-term disability income coverage.

Risk Numbers Indicate Disability Insurance Need

Having no disability insurance coverage is alarming in light of the risks. A 40-year-old man is almost three times more likely to suffer a long-term disability than death. A 30-year-old man is more than four times more likely to become disabled than die. When you consider that an American is injured in an accident every two seconds, it’s easy to see that a life-changing event can strike without warning.

Different Types of Disability Insurance

One way to help reduce the financial effects of becoming disabled is to consider purchasing an individual long-term disability income insurance policy. If you become disabled, disability income insurance pays a monthly benefit that can be used to help pay living expenses, such as a mortgage, car payments, groceries, and utility bills.

Group vs. Individual Policy

You may already participate in an employer-sponsored disability income insurance program. However, group policies generally pay much less than your regular earnings - which could be a real problem at a time when you’re saddled with medical bills.

An individual policy can pay a higher percentage of your earnings, but that percentage will vary depending on the policy you select. If you pay the premiums yourself, the benefits are generally tax-free.

The idea of being unable to work for any length of time can be scary. But with the appropriate individual disability income insurance policy in place, you can know that a certain portion of your family’s needs will be taken into account if you can no longer keep working.