Usually, you must be completely disabled and unable to work in any occupation for a year. About half the people who apply for Social Security benefits are denied. If you are part of a dual-income family, perhaps your partner's income will pay the bills should you become disabled. Many people, however, need both incomes to meet their expenses. Additionally, the emotional burden of providing an income for the entire household while caring for a disabled partner can be significant.
Savings are an appropriate income option during short-term disability.
A longer-term disability, however, could deplete your entire savings. Many people would not want to liquidate assets such as their home or business when their savings run out. Loans Loans are difficult to obtain when you have a long-term disability. And they are even harder to repay. Many people use individual disability income policies to make up for immediate or long-term income shortfalls and to achieve greater peace of mind.