Insurance Blog

Understanding Women's Need For Disability Insurance

Statistics prove that women have three times the chance of suffering a disability that prevents them from working as men. The Bureau of Labor Statistics has observed the growth of women in the workforce is twice as fast as that of men. Today, women supply 30 to 40% of the average household's income. These are significant numbers. The Journal of the American Society of Certified Life Underwriters states that professional women who are 35 years old have three times the risk that their male counterparts have of becoming disabled for 3 months or more. These factors all contribute to the increasing need for women to carry individual disability insurance.   

Disability Insurance Through Your Employer 

Despite the real risk of disability, a significant number of companies do not offer any sort of disability insurance because the law does not require them to. If you happen to work for a company that does offer coverage, it is important to be aware that employer-provided disability insurance is often minimal at best. Typically it covers only about 60% of your gross income, which is inadequate for most people. It is important to fully understand the limitations and restrictions of your workplace policy, and to know how much you would actually receive if you needed those benefits.   

Disability Insurance Through the Government 

There are many men and women who think the government will take care of them in case of disability. They are relying on Social Security benefits to replace their income. The amount that would come from such benefits is typically inadequate to cover monthly expenditures, even for those who qualify. However, qualifying is the most difficult part. In order to be eligible for benefits, five calendar months must have passed, the disability must preclude all types of employment and it must last for a minimum of 1 year or be the individual's anticipated cause of death.  

Determining How Much Disability Coverage To Get 

Prior to taking out a disability insurance policy, be sure to analyze exactly how much you need in order to cover your monthly expenses. This means you will need to tally how much you spend on transportation, housing, food, utilities and other expenses. Subtract any income that is not affected by your ability to work. A point to remember is that benefits are tax free if you have paid for them with earnings that have already been taxed. 

How To Save Money on Disability Insurance 

Women should expect to pay higher premiums than men for disability insurance simply because there are more at risk of needing it. In fact, premiums for women are approximately 40% more than for men. For this reason, it is necessary to try to get discounts on premiums. One particularly good way to obtain a discount is to use insurers who offer unisex rates. You may also be able to get a group rate if more than one person from the same employer applies for a policy. Therefore, find a colleague, preferably male, and apply for disability insurance together for maximum savings.  

With a disability insurance policy in place, women can feel secure in their future, despite their higher than average risk of needing to draw disability benefits.