Disability Income Insurance
Everyone has seen the AFLAC duck in action on TV passing out money to a guy with a broken leg. You do not have to be completely “disabled” to collect enough money to pay off critical bills and buy food. Simply being unable to work for a few weeks or months can put you way behind on your bills or wipe out whatever savings you may have. Like most supplemental coverages, Disability Income (DI) is not expensive and can keep you out of bankruptcy court while you are recovering to go back to work.
Facing the Facts
Consider all the things that depend on your income, and what you take for granted. You may not realize it, but your home, car, food, possessions, health insurance, retirement and your lifestyle all depend on your ability to work and earn a paycheck on a steady basis. There are so many myths surrounding disability and financial survival. It’s in your best interest to educate yourself and know the facts. Ask yourself. “How will pay my bills if I become sick or hurt and unable to work”? Myth 1: My chances of becoming disabled are slim. Fact: During your working years you have a greater chance of becoming disabled than dying by the age of 65. Myth 2: Social Security will pay if I ever become disabled. Fact: 70% of all disability applicants are rejected by the Social Security Administration. In fact, according to the 2003 Social Security Handbook, 5 full calendar months must pass before any disability benefits begin from the government. To qualify, the disability must be one that “can be expected to result in death, or which has lasted or can expect to last for a continuous period of not less than 12 months,” and the disability must prevent the individual from being able to perform any means of gainful employment. Myth 3: I have enough money in savings to get by. Fact: One year of disability can wipe out 10 years of savings, assuming that is if you have that much saved! Myth 4: I can sell my assets if I need to. Fact: What would you sell? Assets sold under forced conditions are often sold way below market value, such as in garage sales. No one wants to sell prized possessions that were worked hard for all your life. Myth 5: I can the borrow money. Fact: Really? Who will lend you money without an income? Even family and friends can only help so much. It is your responsibility to insure yourself if the worst happens. The fact is, Disability Income Insurance is the foundation of a solid financial plan. For pennies-on-the-dollar, a disability income plan can transfer the risk to an insurance company, where it belongs.
Peace of mind is knowing your protection is there exactly when you need it.