Is Disability insurance really needed?

In our opinion, yes.

When you talk to people about disability insurance they often say that they would just get Social Security if they were not able to work. That is true, partially.

According to ssa.gov "Generally, it takes about 3 to 5 months to get a decision. (if you are approved for Social Security disability) However, the exact time depends on how long it takes to get your medical records and any other evidence needed to make a decision."

Will your mortgage company wait 3 to 5 months? What about the electric company? Usually not.

Usually Social Security disability income will not cover your expenses either. According to ssa.gov "The monthly maximum Federal amounts for 2023 are $914 for an eligible individual, $1,371 for an eligible individual with an eligible spouse, and $458 for an essential person."

In most cases that will not cover your expenses. So this is where the individual disability income policy comes in to place.

Many times you were able to get this insurance through work but a lot of times when you stop working there you are not able to continue the coverage and not every company offers it. If you are self-employed, you especially need disability insurance.