“I’ve heard everyone should buy long term disability insurance assuming someone else can’t cover you financially”: Do I really need extra coverage for my desk job?

Hi Money Minder,

I’ve got a question about long term disability insurance. Now, I’ve heard that your best asset when you’re young is your future income, and if you become disabled and can’t work, you lose that asset. So, should everyone have long term disability insurance just in case no one else can financially support you?

I’ve already got health insurance and some sort of short and long term disability coverage through work, but I think the long term disability insurance has its limits and assumes you’ll be able to go back to work eventually. I don’t have a separate policy for this, but I’m starting to wonder if I should.

Just to give you some background, I work a desk job. I’m parked in front of a computer all day, so I’m not at risk of getting hurt from doing any manual labor.

Thanks in advance for your advice,
Confused Worker.

Response from THE MONEY MINDER:

Hello There,

It’s important to recognize the value of protecting your most critical asset – your ability to earn an income – especially when you’re young and haven’t had the opportunity to accumulate substantial wealth. Long-term disability insurance can provide a safety net in case you become unable to work due to a disability, regardless of whether it’s related to your job or not.

Having health insurance and some form of short and long-term disability insurance through your employer is a good start, but it’s essential to understand the coverage limits and exclusions that may apply. Long-term disability insurance typically has provisions that allow for a return to work if possible, but it can still provide valuable benefits in case you are unable to work in the long term.

Given that you work a desk job with no physical labor risks, your chances of disability may seem lower. However, disabilities can arise from various causes, not just physical injuries. It’s crucial to consider the financial impact of a potential disability on your income and overall financial stability.

Considering your situation, it may be beneficial to assess whether the coverage provided through work is sufficient for your needs or if additional coverage is warranted. Purchasing a separate long-term disability insurance policy can provide extra protection and ensure that you have adequate coverage in case of a disability that prevents you from working.

Ultimately, the decision to obtain separate disability insurance should align with your financial goals and risk tolerance. It’s essential to weigh the potential risks and benefits and make an informed decision based on your individual circumstances.

Remember, protecting your income is a crucial part of financial planning. If you have any further questions or need assistance in evaluating your insurance needs, consider consulting a financial advisor or insurance professional to guide you through the process.

Take care of your financial well-being by safeguarding your future income. It’s a practical step that can provide peace of mind and financial security in the long run.

THE MONEY MINDER