Should I Pay for Long-Term Disability Insurance?

Back pain makes some people take time off work.

High chance of disability

Between the ages of 30 and 65, workers have a 50 percent chance of experiencing a disability requiring three months without work, according to the MSN Money site. Three months without pay could leave many families in the United States without a home and possibly bankrupt. Because of the common threat of disability, long-term disability insurance is a smart investment.

Tackle other financial goals first

Although disability insurance is a smart investment, some financial goals should come first, MSN Money suggests. Workers with extra money should pay off credit card balances, then set up an emergency fund with at least enough money to cover three months without pay. After these steps comes long-term disability insurance.

Bottom Line

Because so many Americans lose pay due to disabilities, long-term disability insurance works as a financial safety net. For this reason, most people should opt for long-term disability insurance. People who work in high-risk, physically demanding jobs such as construction especially should buy this type of insurance. Getting rid of credit card debt and building up a three-month emergency fund, however, ranks high on the list of important goals as well.

References

• MSN Money: Don't Rush to Pay off that Mortgage