Why don't people have disability insurance?

In some senses, though life insurance is very important if you pass away, some experts argue that disability insurance is even more valuable. A life-long disability can result in the same loss of income, but the related costs for you and your family -- medications, in-home care, etc -- could be vastly higher. They don't end in many cases. These are costs you have for life.

Even so, statistics show that people are more likely to have life insurance. Roughly 70 percent of people in the United States do, according to one study. It also found that only about 40 percent, just over half as many, carried disability insurance.

Certainly, one reason could be the cost. Someone who is on a budget, without much to spare, may not want to pay a few hundred or a few thousand dollars every year. Estimates put the average premium between $500 and $2,500.

Perhaps a bigger reason, though, is that people still think that they won't be hurt and they won't be disabled. They consider it a problem that only impacts other people. It's the same way that people look at the car accident stats and still risk driving, assuming others will crash -- but not them.

After all, when you buy life insurance, you know you're eventually going to pass away. If you buy disability insurance, you could pay for 50 years and never use it.

The problem is that a sudden disability can strike at any time. If this happens and you're not financially covered, it's important to know about all of the options you have, perhaps including Social Security.

Source: CBS News, "When a sudden disability ends your income," Ray Martin, Oct. 12, 2017

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