Welcome to your 30s! If you’re a 30-39 year old you may be purchasing your first home, starting or growing a family, heading back to school, accepting a big promotion, or possibly even switching careers. Your 30s can be an exciting time for family, career, and financial growth.
Wherever you are in life, you’re hopefully saving for retirement (or at least thinking about it!). And while saving for retirement earlier than later will help ensure financial stability by the time you reach retirement age, there is something else you need to consider when it comes to protecting yourself financially: disability insurance.
WHY WOULD A 30 – 39 YEAR OLD BUY DISABILITY INSURANCE?
Although you may still feel young and healthy with no real concern of a disability impacting your ability to work in the future, there’s still ample reason for 31, 32, or 33 year olds to purchase disability insurance.
For one, the younger you are the cheaper disability insurance will be. Even if you aren’t sure about your need for disability insurance currently, it’s important to note that the longer you wait the more expensive the same amount of coverage will be.
If you keep income, location, benefit period, and waiting period the same, but were to change the time of purchase, you’d find that the same disability policy purchased at age 35 for $168/month will cost you $208/month at age 45 and a whopping $238/month at age 55!
In addition, it’s important to purchase disability insurance while you’re still healthy, and before you develop an illness that classifies as a preexisting condition. If you do develop something that is deemed a preexisting condition it will either make you ineligible for disability insurance or cost you more money for coverage.
For example, disability insurance for a healthy 30-year old female pharmacist making $110,000 in Minnesota could cost around $90/month for $2,400/month of coverage, whereas disability insurance for the same 30-year old with back problems could cost closer to $120/month.
WHAT COULD A 30 – 39 YEAR OLD USE DISABILITY INSURANCE FOR?
Besides the fact that you can purchase disability insurance for 34, 36, or 35 year olds at the lowest rate possible, there are a lot of reasons why you would want to protect yourself with this type of policy.
If you’re out of income for longer than you have savings to live off of you won’t be able to pay your bills on time, likely resulting in having to rack up credit card debt to make ends meet. Missing bill payments could result in ruining your credit, which can take years to build back up.
If you know eventually you’ll want a family, or if you’re already married or have children, then you must factor that into your decision as well. No income means being unable to provide for your family and children (or future children!) If you’re planning on being the primary breadwinner or know your family couldn’t live without your income, then it’s important to plan ahead.
And how about investments? A few years without income means missing out on the ability to invest and take advantage of compound interest. If you’re hoping to retire earlier than the standard retirement age missing o