Disability Income and Medical Coverage
Ahhh... the freedom of being out on your own. Maybe you are a recent grad that has entered the workforce for the first time, and are really beginning to enjoy the freedom that having a decent income and your own place can bring. But with "adulthood" also comes adult responsibilities, and studies have shown that one that many young people overlook is disability insurance. Especially singles. To a young healthy person the last thing on their minds is the possibility they can become disabled. But disabling accidents are far more common then you think, and if you are single and the sole source of your income, having such an accident or injury can put you in dire financial straits.
Young single people actually may need to think more about a private disability insurance policy than any other group - just because of the very fact that they are more likely to engage in "High Risk" activities that can result in disabling injuries, than say a married person with a family to support. Many young singles are also under the mistaken impression that they will be covered by their employee health benefits, or other individual insurance policy, if they become disabled. It is true that if you have an accident and break your leg while water skiing - your health insurance will pay for your medical expenses. However, if you are laid up and cannot work, only disability insurance will pay for your other expenses. Some company or individual health plan policies do offer a degree of short-term disability coverage, but most experts agree that single income earners with high bills should carry some kind of supplemental coverage.
If you do receive medical coverage from work and have not signed up for any kind of disability insurance, check with your benefits advisor to see what if any plans they offer. If your job does not offer disability insurance, or if you feel the coverage does not adequately suit your needs and lifestyle, shop around for an individual disability policy. Again these can be tailor made to fit your budget and needs, and it is easy to get a free quote on such a plan. Remember that a disability policy is designed to be short-term compensation, and not a dollar for dollar replacement of you actual income. Disability compensation should generally be around 50 - 70% of your actual income, depending on your lifestyle and expenses. Your insurance agent or financial planner can help you determine the level that is best for you.