Insuring your income can be done just don’t put it off until tomorrow
Consider this….
On a business trip the breadwinner of the family, while crossing the street, is struck by a taxi swerving to avoid another vehicle. In an instant, the victim is catapulted 30 feet into the air and when he hits the ground he suffers a shattered pelvis. Over the next three years he endures seven surgeries as well as rehab to restore the use of his legs. Most of his doctors thought he’d never walk again. In the months and years that followed, due to his inability to earn an income, the finances of his family would have been destroyed had he not made the decision years earlier to purchase disability insurance.
The reality is that money provides you freedom and disability insurance ensures an income when medical emergencies and health crises strike. Disability is the No. 1 reason for foreclosures and bankruptcies, according to the Council for Disability Awareness. There’s good reason to protect a paycheck. For most people, a career is their single largest financial asset. Yet only 25% of American workers have any kind of disability insurance, most of it through their employers.
Disability insurance continues to be a hard sell for many people regardless of the rationale behind it. Every day people insure their car, home, life, pets but insuring their paycheck is not always done. The reasons could be as simple as some people are not aware that they can, don’t understand it can be done or might view it as something quirky that might not work. Nothing could be farther from the truth.
Insurance is meant to protect you and there is nothing bigger to protect than your ability to earn a living and pay for everything from your food to your phone. We all laugh when we see the little AFLAC duck in those humorous commercials but people who learn about supplemental insurance through these commercials do buy when their employers offer it. Well, disability insurance is the real supplemental insurance when you can’t work due to illness or injury.
As with every type of insurance, much must be considered when you make the investment to protect your future. Everyone’s situation is different so you should talk with insurance professionals who can help you navigate you through any uncertainty. What is vital is that all of your various insurances you have should be reviewed that the addition of disability insurance will help to meet your needs should those needs arise.
Among the very positive aspects of disability insurance are:
- Benefits are tax free and replace up to 65% of your gross income in some cases.
- Your occupation, age, sex and benefit amount dictate your premium so buying when you are young and your health is good is ideal. For example, a 30 year old male can insure 63% of his income for $77 a month and his contract can never be cancelled. That’s $2 million of future earnings without a raise and working to age 65.
- Discounts are available for non-smokers and those working in the medical and legal fields
- If you are a company offering disability insurance to your employees, multi-life applications (3 or more employees all applying for coverage) could result in additional discounts.
To understand your needs in terms of disability insurance for you and how it can protect your family and yourself (and if you are a business owner, protect your employees), contact Shapiro Financial Planning Group. We can not only help you navigate the intricacies of disability insurance but also its larger role in your financial planning for the future.
