Consider Disability Insurance
You have worked hard and created a budget and executed a savings plan and you are living well within your means and are looking forward to a comfortable retirement. Everything is going exactly as planned, but then you suffer a debilitating sickness or injury that is going to keep you out of work for an extended period of time. The good news is that you have accumulated a fair amount of money in your emergency fund, but this will only last for a relatively short period. It is not a good idea to use credit cards and accumulate high levels of debt when there is the option disability insurance.
Disability insurance is income paid to you weekly or monthly when you can't work because of sickness or injury. The payout provided may be stated as a percentage of income or as a set dollar amount. The policy defines how much you will be paid, how soon after you are disabled payments appear in your mailbox, and when they will cease. Benefits periods may depend on whether the disability was caused by an accident or illness. The longer the benefit period, the higher the premium will be.
There many different kinds of disability contracts. Some plans are available from your employer through its group health package and from private insurers. There are also various public sector programs including Social Security and some State Disability Insurance programs. Veterans, members of the armed forces, federal civil servants and coal miners are also covered by federally-sponsored programs.