Why Now is the Time for Disability Insurance

The recent financial turmoil in the economy make this an excellent time to review just what funds you would have available to meet your financial obligations if your income stopped and life went on.

There are two basic threats to your ability to earn money and meet your financial goals: death, of course, and disability. You are far more likely to become sick or hurt and unable to work during your working years, than you are to die. So it makes perfect sense to protect your income with disability income insurance.

This type of protection is appropriate for anyone who works for an income, self-supporting singles without other people or sizable assets to rely upon, married couples and families.

Business owners have even more reasons for disability insurance protection. It is not only you and your loved ones you protect, but your employees and all those who depend on your business continuing, even if you can’t.

An accident or long-term injury or illness can occur at any time, preventing a person from working for months or years. A study for the Life and Health Insurance Foundation for Education (LIFE) puts the probability that a worker between the ages of 25 to 65 will suffer an accident or disability that keeps them out off the job for at least 90 days at 27% for men and 34% for women.*

A disability, even one lasting only several months, can have a devastating impact on your finances. Expenses for a mortgage/rent, groceries and other basic necessities continue and may even rise if you cannot work. It could also preclude you from being able to purchase life insurance.

What are the Odds?
Do you know what your odds are of becoming disabled? The younger you are, the more years you are at risk of being disabled. For that reason, here are some figures at specific ages that may surprise you.

Odds of Becoming Disabled Before Reaching Age 65**
 

Is There a Gap In Your Plan?
Disability income insurance can replace a good part of your paycheck if you are unable to work because of an accident or illness, such as heart attack or cancer. Some employers offer short-term and possibly long-term group disability coverage. If your employer does not provide this type of coverage, the amount your employer provides is not sufficient or you are self-employed, you need to consider purchasing an individual policy.

While there are many factors to think through with regard to your short- and long-term financial needs and goals, talking with a financial representative can help. A trusted representative can help you decide what kind of insurance is best for you and how much you may need in order to achieve financial security in the long run.

*The Real Risk of Disability in the United States conducted by Milliman, Inc. for the Life and Health Insurance Foundation for Education, May, 2007.

**What are the Odds Calculator, www.nmfn.com | Learning Center | Calculators