Question

1. Explain why the disability needs for a particular individual are likely to be even greater than the needs in the case of premature death? How should an individual handle the risk of disability.

Answer 1

A disability needs will require more financial support than a premature death since it involves higher costs than costs related to the death of an individual. A disabled person will more likely need a full time personal assistant, higher medical bills and inability to earn in the future. Also permanent disability will likely cause more financial hardships throughout the life of an individual and may make him financially dependent.

An individual must handle the risk of disability by taking an appropriate disability insurance based on age and needs, family hereditary. Also he must have a corpus fund to face any unseen risk and must also start saving early. He must invest in assets that will yield higher and regular returns.