Q: Should We Buy Disability Insurance While We Are Still In Debt?
YES! Dave feels very strongly that everyone working that is reliant upon their income for maintaining their lifestyle needs to have disability insurance regardless of whether you are married or single. Dave does not include disability insurance in the baby step process since each household has different situations to address. His advice is that if your loss of income due to a disability would cause financial hardship for your family then you need disability insurance regardless of where you are in the debt snowball. As you get out of debt you actually are reducing the amount of insurance you need so your peak time for protection is when your family is less capable to maintain their lifestyle because of debt and a lack of savings. The establishment of an emergency fund equal to 3 to 6 months of your expenses is a protective measure to use for short term risks and then concentrate your dollars on Long Term plans that cover you for periods of five years or longer. Remember to always check with your employer for access to a group type plan since these can be the most affordable options available.