While most people
in America are diligent about purchasing life insurance, many seem far less
inclined to buy disability insurance.
Even though statistics tell us that at a young age we are far more
likely to experience a disability rather than death we still fail to realize
the serious financial implications of not being covered in this area. Consider that during your working years, you’ve got a one in three chance of
becoming disabled.1 If you think about it in
terms of your financial needs, factor into the equation that in the event of a
disability, your medical expenses will rise, and with a lengthy period of time
with no income your family will indeed experience hardship and difficulty.
Every two seconds an American is injured in
an accident.2 If
it happens, you can’t always rely on Workers’ Compensation or Social
Security. About 75% of disabling
injuries happen outside of work, where you’re not covered by your employer.3 And, only one third of people
who apply for Social Security disability benefits are approved.4 It therefore seems
practical to be financially prepared should something happen to you.
Right Type of Coverage
There are two
forms of disability policies that would protect you in the event of a
disability. Your employer may offer a
group disability insurance policy.
While such coverage would offer a base layer, it will pay you an amount
that is much lower than your regular income.
With extra medical bills in the picture, dependence on a group policy
alone will most likely not provide enough financial coverage.
You can also
obtain individual long-term disability insurance for yourself. This type of policy would be the safest bet
to cover all of your financial needs.
You can choose the policy and benefits that best suits your needs and
generally such benefits are tax-free.
If you were suddenly faced with the prospect of a disability it would be
reassuring to know that your family’s financial needs will be taken care
of. The security that comes with
disability income insurance reduces the risk that your family will be
financially challenged should the unexpected happen.
1 Almost 3 in 10 20-year-olds
will become disabled before retirement, according to the Social Security Administration,
2 National Safety Council, Injury
Facts, 2000 Edition
3 National Safety Council, Safety
Agenda for the Nation, 2000
4 Social Security
Administration, SSI Annual Statistical Report, 2000