When Should You Get Disability Insurance?
Learn how timing affects eligibility, cost, and the strength of your financial plan
Your income is the foundation of your financial life. It supports your home, savings, daily living, and long-term goals. But few people think about protecting that income until a health scare makes it urgent. Disability insurance is one of those tools that works best when planned for early, not when you are already facing a crisis.
Knowing the right time to buy coverage is a key part of building a stable and resilient financial plan.
The Best Time Is Before You Need It
The ideal time to purchase disability insurance is when you are healthy and actively working. This gives you access to the widest range of coverage options at the most affordable price.
| Life Stage | Why It Makes Sense to Act |
|---|---|
| Early career (20s–30s) | Lower premiums, good health, long income-earning runway |
| Mid-career (30s–50s) | More income to protect, increasing financial obligations |
| Business owners/self-employed | Often not covered by group plans, need personalized protection |
| Before starting a family | Added pressure to protect dependents and household income |
Waiting until you face a medical issue may limit your options or result in exclusions, surcharges, or even denial.
Tip: Locking in coverage while you are healthy means your policy is more likely to stay in force as your responsibilities grow.
Signs It Is Time to Apply
Even if you are not thinking about it in your early 20s, there are clear signs that disability coverage should become a priority:
-
Your income is your only safety net
If you do not have a partner’s income or substantial savings to fall back on, a gap in earnings could quickly become a crisis. -
You are self-employed or contract-based
Without employer benefits, your risk of income disruption is higher — and the responsibility is yours alone. -
You are taking on major financial obligations
A new mortgage, car loan, or childcare costs can make income protection essential. -
You have dependents
If others rely on your ability to earn, disability coverage helps maintain your family’s financial stability.
What Happens If You Wait Too Long
Many people put off applying for disability insurance because they feel healthy or believe group coverage is enough. But there are real risks to waiting:
-
Health changes could disqualify you
Even a mild condition like high blood pressure or a past injury could lead to higher premiums or exclusions. -
You may need to work longer
Without protection, a health issue might force early withdrawals from retirement savings or delay your ability to stop working. -
Employer plans may not travel with you
If you change jobs or lose group coverage, you may not qualify for a personal plan later in life.
Caution: The best time to buy disability insurance is when you think you might not need it. Once you do need it, your options may be limited or unavailable.
How to Time It With Your Financial Plan
If you are building a financial roadmap, disability insurance belongs near the foundation. It supports your ability to stay on track with savings, manage debt, and maintain your lifestyle in the face of medical uncertainty. For many, adding coverage during key transition points — like marriage, a home purchase, or starting a family — is both practical and cost-effective.