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Writer's pictureJing Zheng

Young and Healthy? Don’t Forget About Long-Term Disability Insurance!

Let’s be real: when you’re young and feeling great, disability insurance is probably the last thing on your mind—and I totally get it! You’re likely more focused on crushing it in your career, growing your family, buying your first home or upgrading to a bigger house. It’s easy to brush off something like disability insurance, especially when you think it’s just for older folks or people in dangerous jobs.


But here's the thing: even if you consider yourself careful or have all your bases covered with life insurance, car insurance, or renters’ insurance, long-term disability insurance is just as crucial—maybe even more so. And trust me, young people, especially young high income earners, need it just as much as anyone else. Let’s break down why:


1. Life Happens—At Any Age

Disability insurance isn't only for people in high-risk jobs—accidents and illnesses don’t discriminate by age! Whether it’s a car accident, a random sports injury, or a sudden illness, anyone can end up with a long-term disability. 90% of Long-Term Disability Insurance claims are actually due to illness, including conditions like musculoskeletal disorders, cancer, cardiovascular disease, and mental health issues. Yeah, not exactly the kind of stat we like to think about, but it’s real.


So, if something does happen and you’re unable to work for a while, long-term disability insurance can swoop in and save the day by covering a big chunk of your income. That way, you can still pay your rent, keep up with bills, and stay out of debt while you recover. And if you’re a high-income earner, a well-designed long-term disability insurance policy can protect you from having to drastically change your lifestyle. It’s all about keeping your financial security intact, no matter what life throws your way.


2. Your Income Is Your Biggest Asset

When you are young or in your prime working years, your biggest financial resource isn’t your car or your house—it’s your ability to earn money. Think about it: over the next 30 or 40 years, your income could add up to millions of dollars. Protecting that income is huge.


Without disability insurance, one big injury or illness could drain your savings, leave you unable to make rent or mortgage payments, and throw your whole financial plan out the window. But with it, you’ve got a safety net that lets you focus on getting better, instead of stressing about how you’ll cover your bills.


3. It’s Cheaper When You’re Young

Here’s a fun bonus: disability insurance is way more affordable when you’re young and healthy. Yep! Since younger folks typically have fewer medical issues, insurance companies charge lower premiums.


Lock in a policy now, and you can snag a sweet rate that’ll stick with you for years. If you wait until you're older or after a health scare, not only will it cost more, but you might even have fewer options for coverage. Why not get it while it’s affordable?


4. Employer Plans Might Not Be Enough

Okay, some of you might be thinking, But I already have disability insurance through my job! First off, great! But here’s the catch: most employer-sponsored plans don’t cover your full salary—they typically replace 40-60% of your income and only last two to five years. Plus, if you switch jobs or lose your job, that coverage could vanish. According to the U.S. Bureau of Labor Statistics, only 38% of employees in the private sector have access to employer-provided long-term disability insurance plans.


That’s why having your own private long-term disability policy is so important. It follows you wherever you go, and you can customize it to fit your specific needs. Want a cost-of-living adjustment or guaranteed renewability? You’ve got options.


5. Disability Isn’t Just Physical

When we hear “disability,” we tend to think of physical injuries—like a broken leg or back injury. But disability can also be mental or emotional. Conditions like depression, anxiety, and other mental health issues can be just as disabling as physical ones, making it hard (or impossible) to work. And guess what? Mental health disorders are actually some of the leading causes of disability claims, especially among younger adults.


The good news? A solid disability insurance policy will cover both physical and mental disabilities, giving you full protection no matter what comes your way.


6. Peace of Mind is Priceless

Let’s be real: life is full of surprises, and not all of them are fun. Disability insurance gives you one less thing to worry about when life throws you a curveball. If something happens, you’ll have the financial backing to keep moving forward. No panicking, no stressing—just peace of mind, knowing you’ve got a safety net in place.


The Bottom Line

I get it—disability insurance isn’t exactly the most thrilling thing to think about when you’re young. But here’s the deal: life is unpredictable, and having that extra layer of protection in place is one of the smartest moves you can make. Think of it this way: risk management is the foundation of your financial house. Only when we’ve got that foundation solid can we start talking about wealth building and financial growth. It’s all about protecting what you have now, so you can focus on growing your future wealth with confidence.


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