Final answer:
Long-term disability insurance provides comprehensive coverage for disabilities that occur both in and out of work, unlike worker's compensation, which only covers work-related injuries. This ensures financial protection for a broader range of potential risks to one's income-earning ability.
Step-by-step explanation:
To persuade your friend Jay about the importance of getting a long-term disability insurance policy, you can explain that while worker's compensation insurance provides coverage for injuries sustained on the job, it doesn't cover disabilities that occur outside of work. In contrast, long-term disability insurance offers a more comprehensive safety net by covering a wider range of potential disabilities, whether they happen at work or not. Insurance is about managing risk, and having multiple types of insurance can ensure greater financial protection and peace of mind in the event that something unforeseen happens. People often maintain multiple types of insurance such as health, car, house, renter's, and life insurance, each serving to protect against different risks.
Another consideration is that long-term disability insurance can provide financial support for extended periods of time when you are unable to work due to a disability. This is crucial because your ability to earn an income is one of your greatest assets. Worker's compensation is limited and doesn't offer this extended support for non-work-related disabilities.