When people take out insurance, they generally do so for the small items they own, for example, their TV, laptop or expensive hi-fi system. Very rarely do people think of insuring the most important thing they own, themselves.

Disability insurance is a means of protecting your income should you ever become unable to work for a prolonged period of time as a result of an illness or disability.

Having such cover is much more important than insuring yourself against loosing your new laptop or iPhone, because whilst these items may cost a lot to replace, that amount will be nothing in comparison to how much you would loose if you were unable to work for a few months.

Yet despite the advantages of such cover, very few people actually have disability insurance, as they feel this is only something which applies to old people or that they will never become sick or injured. Hopefully they are right, and they never will be unable to work, but since you can’t predict the future or what will happen to you, is this a risk you are willing to take?

For example, suppose you are the only member of your family who works, and as a result your income supports not only you, but your wife and your children. If for whatever reason you suddenly were unable to work, what would happen then?

If you were lucky and managed your money wisely, then you may have some savings or an emergency fund to fall back on, but this probably won’t last you very long anyway as most people tend to be poor savers.

Eventually your money would run out, and you could soon find yourself in a position where you were unable to support your family, pay your bills and keep up with your mortgage repayments.

In a worst case scenario you could end up loosing all you own, and be forced to sell your house. This is something which has happened to many families, and today sudden loss of income is one of the major causes of home repossessions.

Getting sick and being unable to work is something nobody likes to think about, but the fact that remains that it is a very real possibility and something that could happen to any of us.

So if you have people who are dependent on you and your income, or have very little money saved away in case of an emergency, then taking out disability insurance could be one of the smartest moves you ever make.

To find out more about money and insurance, please see my website: What Is Disability Insurance? & What Is Life Insurance?