The Importance Of Disability Income
Disability Income
|
 |
When you're young and healthy disability insurance is probably the last thing on your mind. It may be difficult to imagine suddenly becoming disabled or seriously ill. But stranger things have happened! In fact, statistics show that it's far more likely that the average person under the age of 65 will become temporarily disabled for a period of time and have to miss work.
What Statistics Report
According to a study in the National Underwriter Magazine, one in three working Americans will become disabled for 90 days or longer before the age of 65. The average disability absence is two and a half years! Can you imagine living without regular income for that period of time? Without disability income you will be on your own and forced to pay your bills with money you don't have.
True, if you have workers' compensation then you might be covered. But what if you are self employed? Worse yet, what if you have workers' compensation but your policy states that the injury has to be suffered while working on the job? If you injure yourself repairing personal property then again, you're stuck with nothing. What if you get a serious bout of pneumonia and have to miss a month of work? You certainly won't be able to work when you can barely stand and breathe!
Finally, the report stated that 80% of employed Americans either do not have any disability insurance or have insufficient coverage. The chances of you becoming temporarily disabled are two or three times greater than dying unexpectedly. And yet more people have life insurance policies in place than they do regular disability insurance. Your family will be provided for if you die; but who will provide for you and your family when you're injured and can't work?
Disability Income Can Help
Imagine the peace of mind you will have, knowing that even if you become seriously ill or injured, that you will start receiving payments—in most cases, about 50% of your original gross monthly income. Obviously, that doesn't sound as good as 100%. But when you are injured and unable to work, that regular income can be a life saver. You can pay your most important bills and cut costs elsewhere until you are ready to resume your job. Disability income is also tax free, one more convenience to consider.
Is it likely that 80% of those employed Americans living without disability insurance have families? Definitely, which make the statistics even more startling. While an individual living alone or with family might be able to get by if he or she becomes injured, what does an entire household do when there is no work and thus no replacement income? Borrowing from your savings account, retirement or intuition fund will not solve the problem but will rob you of other important costs.
Purchasing disability insurance is a way of planning for the unexpected future. If you work in finance or for a major corporation, then you certainly appreciate how important planning can be. Don't get caught with nothing—find a good disability insurance policy and enjoy peace of mind.
|
