Almost everyone needs disability insurance. Think about it. Your capacity to earn a living is crucial, and your income makes it possible to buy food, make mortgage payments, provide for your children, take a vacation, and countless other things. Many faithfully pay premiums for car, life, homeowner’s insurance, and perhaps even a pet’s medical insurance, but they neglect this critical protection, disability insurance.
Few things are as disruptive to a family’s happiness as having a parent, or maybe both, lose their income due to an accident or illness. When payment is drastically reduced, it creates stress and unmet needs and expectations. It often creates feelings of guilt in a parent. Life is demanding without a reliable source of income.
A LIFE Foundation study states that 70% of working Americans could not be without income for more than one month without severe financial difficulty. Surprisingly, the same research says that one of every four Americans couldn’t last a week if they were seriously injured and unable to work. The answer to the question, “Does almost everyone need disability insurance?” is a resounding “Yes!
It is essential for an individual, especially a family, to have a financial plan. Disability insurance should be one of the foundation stones of everyone’s financial dream because it protects such an important asset – your income.
Other statistics need to be considered. The Senate Finance Committee states that 70% of people between the ages of 35 and 65 will become disabled for three months or longer and that 90% of injuries will occur away from work.
After you decide to purchase disability insurance, there are still important questions to be answered and decisions to be made.
- “How large a benefit do I need; how much will it cost to purchase a plan with that level of protection?”
- “Does my spouse need this kind of policy even if he/she doesn’t work or has a small income?”
- “How long is the waiting period before I start receiving checks?”
- “Does my employer offer a disability plan that I am unaware of?”
- Will I need this insurance after I reach age 65?
All these and many other questions need to be taken to a capable, experienced insurance agent who specializes in this type of insurance.
This is an important decision with a significant number of complicated considerations, such as;
- “Is the plan guaranteed to be renewable?
- “What is the maximum benefit period?
“ “Which occupation class does my job fall into?”
Once the decision is made, the policy is purchased, and you can breathe a sigh of relief. You have done what is necessary to protect your happiness with disability insurance. More importantly, you have saved your family by providing for them if your ability to work is interrupted.