If you’re a 40-49 year old you likely already are a homeowner, have a family, be climbing the corporate ladder or maybe even running your own business. By now you’ve hopefully paid off any student loans you once had and are diligently saving for retirement.
If you’re 47, 48, or 49 you probably earn more now than ever and are more financially secure than you were in your 20s and 30s. That being said, along with having more income you also have more to protect. This is why disability insurance is even more important in your 40s.
REASONS FOR A 40 – 49 YEAR OLD TO BUY DISABILITY INSURANCE
Although you may not be as young and healthy as you once were, experiencing an unexpected illness or injury that leaves you out of work is probably not top of mind. Regardless, there’s still ample reason for 41, 42 or 43 year olds to purchase disability insurance.
While purchasing disability insurance policy in your 20s and 30s would have been less expensive, buying a policy in your 40s is still cheaper than if you wait even longer. 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. Just like retirement, every year counts when it comes to helping protect your financial future.
Being you’re now in your 40s, you might know family or friends who have been impacted by cancer, autoimmune disorders or other illnesses, or that have been in car, biking or other accidents. 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.
For example, disability insurance for a healthy 40-year old tech consultant making $130,000 in Michigan could cost around $230/month for $2,400/month of coverage, whereas disability insurance for the same 40-year old who had prostate cancer could cost closer to $270/month.
WHEN YOU ARE 40 – 49 YEAR OLD WHAT USE IS DISABILITY INSURANCE
Besides the fact that you can purchase disability insurance for 44, 45, or 46 year olds for a lower rate than if you continue to wait, there are many other 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, 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 know your family couldn’t live without your