Here is a staggering statistic: Approximately 25% of today’s 20 year olds will become disabled before they reach age 67, according to the Social Security Administration.
In fact, Life Happens, a non-profit organization that educates the public about insurance needs, states that three in ten Americans will suffer a disability that keeps them out of work for 90 days or longer and that 90% of disabilities are caused by illness, not accident.
What’s on the line?
Disability income protection is a vital but often overlooked part of your financial plan.
Think about where your paycheck goes: You pay your mortgage, put food on the table, save for retirement and your kids’ educations. You take vacation and enjoy life. Now, what if the money wasn’t there for a few months. How much would you have to sacrifice to keep paying that mortgage? Could the kids still get to college? And what if the disability lasted longer?
Once your savings are tapped, you could have to rely on credit to purchase even the basics. If your disability continued on long enough, you may find yourself unable to repay loans or credit cards, therefore jeopardizing your credit. Are these risks you’re willing to take?
What about disability insurance through an employer?
Employer-provided long term disability insurance is rarely enough. It is often capped at a percentage of your base salary. High earners and those who count on commissions are often left with a large gap. If you had to pull upwards of 70% of your normal salary out of savings each month, how long could you do that? And at what ultimate cost?
So what’s the answer?
An individual disability policy can provide you with the coverage you need to adequately protect your lifestyle. Think of it as income protection. You don’t need half a paycheck – you need the whole thing. Individual disability insurance can work in conjunction with your employer provided plan to help you maintain the income you’ve worked so hard for.
We’re here to help
Our team of insurance advisors can review your insurance needs and help to secure you the policy to protect you, your family, and all you’ve worked for. Call us today.
All insurance policies are different. Be sure to review your insurance policy for specific information about coverages available to you. Nothing in this post is meant to suggest a guarantee of coverage.