21 Aug Disability Insurance 101
Disability insurance is the most overlooked of the major types of insurance
That’s likely because many people think a disabling illness or injury will never happen to them. But according to a Life Happens survey, a person has a three in 10 chance of suffering a disabling illness or injury that would keep them out of work for three months or more during their career. This is why Disability Insurance is more important than ever.
Your most important asset is not your home, your car, your jewelry or other possessions. It’s your ability to earn a living. Think about it: All of your plans for the future—from buying a home to putting your kids through college to building a retirement nest egg—are based on the assumption you will continue to earn a paycheck until you retire. But what would happen if those paychecks stopped? That’s where disability insurance comes in. It provides an income to you and your family if you are unable to work because of illness or injury.
Understanding the Risk of Disability
Who needs disability insurance? Just about anyone who has a job. The possibility of a disabling illness or injury may seem remote, but statistics paint a different picture.Of today’s 20 year-olds, one in four will become disabled at some point in their career, according to the Social Security Administration. While it’s true that people in professions like farming, law enforcement and construction face greater risks, the odds of suffering a long-term disability are high for all workers because illness—not accidents—account for 90 percent of disabilities that keep people out of work. (See chart on the next page.) Your paycheck could stop arriving just as an illness or injury brings significant expenses for medical bills, physical rehabilitation or the cost of modifying your home to accommodate medical equipment. Missed mortgage payments could put ownership of your home in jeopardy. Falling behind on credit card and other bills could mean burdensome late fees and escalating finance charges. In fact, disabilities have historically caused nearly half of all mortgage foreclosures and a significant number of personal bankruptcies.
If you have any questions regarding Disability Insurance and the value and piece of mind it provides, please contact our trusted agents at 844-879-7747 today.