Here are the exact reasons WHY, you need it:
1. You have the most to lose. Not only are you at a larger risk of getting hurt (based on daily activity), but you also have a larger earning potential. Why wouldn’t you want to protect that? If you’re unable to work for whatever debilitating reason, what will you do for income?
2. You’re not as financially established. As a young wage earner, you may have fewer financial responsibilities (no kids, mortgage, spouse). Fewer assets and savings means that you cannot afford a financial loss, if you become ill or get injured.
3. The time is Now! At some point before reaching retirement age, today’s 20 year olds will experience an income disrupting disability. There is an increased exposure for potential disability due to the amount of years until retirement. Most importantly, the older you get the more likely you are to become sick or injured. Wisdom note – it becomes harder and more expensive to obtain these types of coverage as you age.
I’m the first person to say, I too had the same mentatiliy of not needing this type of insurance. From disability, to life insurance, or a retirement account I was against all of it. As they say “with age comes wisdom”, when you know better you do better. For the last 3 years, I’ve had a policy for both disability and life insurance coverage. I advise everyone to take out a policy, even if it’s only a small amount. Within the last year, I’ve witnessed far too many families experience some kind of financial difficulty due to the inability to work. They would have been able to avoid those circumstances if they had supplemental income. So yes, you need disability insurance!