Most people think the odds of becoming disabled are about the same as winning the lottery. They don't think about the need for long-term disability insurance because, honestly ... how much do they really "need" it?
The answer is, a lot. And the kicker is that, if something bad happens and you don't have that insurance in place, it's too late to get it. You then have a person at home who is unable to produce an income, yet still needs to be cared for.
Long-term disability insurance is one of the most underinsured areas that the average person has. It is especially needed in families where there is only one income earner. If that person becomes unable to work, then the family will have big-time money trouble.
So where do you get this kind of insurance? How much do you need? Is it just for the income earners, or do all adults in the house require it?
Hear Dave's answers on long-term disability insurance.
And one more thing: As long as we're on the subject of disability, don't bother getting a short-term policy. There's another name for that—it's called the emergency fund. If you are in a car wreck and can't work for a few weeks, then the savings you have built up in Baby Step 3 will cover you until you're back at the job. If you aren't at that point yet, you still shouldn't get a short-term policy. But you should get moving ... as in, get out of debt and get that emergency fund saved!