Insurance policies are put into place by consumers that want to protect their families in the event of unforeseen circumstances. Life insurance, for example, will financially protect a family that experiences a death; young children will have policies enacted for them should a parent pass away while the children are still dependent on them or a spouse will be protected should their partner die. Along the same lines, disability insurance is put into place to protect families that lose wages due to an illness or injury that prevents them from doing their job. When a policyholder experiences such a situation and cannot return to their employment – either on a temporary basis or permanently, disability insurance plans are set in motion. Disability income insurance essentially pays the policyholder while they are out of work, protecting the assets and lifestyle of their family.

Many people rightfully think of disability insurance as something purchased by young families that have very young children to protect; and this is often the case. But disability insurance is also significant – and necessary – for older couples; even those whose children have already left home. The reason for this? To protect retirement and savings plans.

If a person were to become hurt or ill at a time when they are approaching retirement but are not quite financially ready to retire completely, a prolonged absence from work could devastate savings plans that have been put into place – changing retirement plans considerably. Disability insurance plans protect savings and retirement plans by paying the policyholder a wage while they are out of work.

Should this be a temporary leave of absence, disability insurance will pay the policyholder’s wage until they are able to return to work – with savings and retirement plans intact for future use. If the disability is permanent and the policyholder cannot return to work, disability insurance will pay the policyholder up until the traditional age of retirement.

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