Of all the types of insurance you have to worry about, disability tends to be the last. Yet for most Americans, the reality is that an unexpected accident or illness can be financially debilitating. Have you ever thought about what you would do if you were seriously injured and unable to meet the cost of living? Although the thought can be grim, not planning for an event with disability insurance can be disastrous.
A recent survey of over 7,000 adults by GOBankingRates found that 34% of adults have no savings and 35% had less than a thousand. That’s almost 70% of adults who would be very poorly prepared to deal with no income. According to the Social Security Administration, more than 25% of all 20-year-olds will experience a disability for 90 days or more before the age of 67. These numbers clearly demonstrate a disconnect and a financial risk you should know about.
No one ever thinks it will be them to get in an accident or fall ill. If we did, people would never leave their homes. But that is exactly the point. These are unforeseen events that would be wise to plan for.
Did you know that despite the average disability claim lasting only 13 months, mortgage foreclosures from disability occur 16 times as often as they do for death? And still, more than 40% of full-time workers do not have coverage.
There are a few reasons why people may shrug off the need for disability insurance. When it comes to the term “disability” many consider that to mean a worst-case scenario. Whether that is a spinal cord injury or an amputation, it’s extreme. But the fact of the matter is that the majority of disability claims result from more common illnesses that can have a slow onset, like diabetes or cancer.
Another reason why people neglect to go out and get a disability insurance quote is that they assume they are already insured. Disability insurance is not the same as workers compensation insurance (workers’ comp). That only covers injuries on-the-job. In fact, according to the National Safety Council, 73% of long-term disabilities don’t even occur in the workplace. Additionally, in the instance that an employer does offer disability insurance, it is generally what is considered “short-term” and rarely covers your leave of absence.
According to the U.S. Department of Labor, 70% of employers don’t offer any form of long-term disability protection. That means that if you are injured or become ill for an extended period of time, you will be cutting into your savings as income.
If you are lucky enough to have an employer offer disability insurance, you should check to see if it is short or long term. Chances are it is shortsince they would like to encourage you to return. Even long-term disability benefits under an employer, however, may not benefit you. Typically, the longer the payments are, the lower the percentage of pay you are receiving.
If your place of employment fails to provide you with any sort of safety net, there are only a few states that offer disability insurance protection, or what is known as a TDI program (Temporary Disability Insurance). The following six states offer TDI:
If you do not happen to live in these states and you become sick or injured, there is no obligation by any agency to assist you. Even when you do reside in one of these six, the coverage is only temporary, and you will be expected to eventually return to work, or continue to provide for yourself.
It is hard to make a case for disability insurance sometimes because it is not tied to any concrete need in your life, like car or health insurance. However, there are certain types of people that would be deeply financially affected by an illness or injury. These groups are prime candidates for disability insurance due to their high-risk circumstance. If you fall into one of these categories, you should strongly consider getting a disability insurance quote.
When comparing the disability insurance individual vs. family, it becomes apparent that one of the highest risk groups are that of single people. Most individuals assume since they have no one else to care for, they will be fine. But what about you? Experts advise when seeking a disability insurance quote, it is best to look for something that replaces the most of your income (generally the highest is 60-70%). Even 13 months without income for a single person can be disastrous.
Whether they are paying for college or additional assets, families that are established with older children generally have a significant amount of financial obligation. They also tend to have higher wages that will be a greater loss should an injury or illness occur. In the case where so many people may be relying on your income, disability insurance should be a major consideration here.
With the current economic climate, even 13 months out of work could spell financial ruin for a young family. Bills like childcare and the mortgage would remain unpaid the longer you were absent from work. In this instance, disability insurance can be a necessity and a disability insurance individual plan may not be enough. As a group at risk, it’s important to understand which disability insurance quote will work best for you.
It becomes apparent that young or old, single or family, there is a dire need for an extra form of protection when it comes to relying on your health and income.This also means you cannot rely on programs like Social Security to be there when you need them.
If people rely on you in any sense, disability insurance is a good idea; but never as strong a case can be made as for when you are a business owner. Think about what would happen to your business and employees should you unexpectedly fall ill or get into an accident. Would things easily proceed without you? Would you be able to still pay your people? In addition to offering your employees a form of disability insurance, you also need to look out for yourself as an individual. Both your personal and business financial obligations can be greatly affected should you be out of commission for a month. Getting a disability insurance quote as soon as possible will ensure your employees still get their paychecks, your vendors are happy, and everything continues to run smoothly.
Insurance isn’t always fun, and it can be slightly complex—but it doesn’t have to be impossible. The worst move you can make is avoiding a policy because you have too many questions. You need expert guidance and advice during this process. That’s where we come in. With just a few quick questions we will help you connect with the best possible carrier for your needs. We deliver the means to assist you with researching everything from insurance rates and coverage areas to dedications and benefit periods. We can tell you about the top brands and find you the disability insurance protection that meets every tick mark on your list. So, when it comes to wondering whether or not this is insurance you need, just remember one thing. Could you afford to lose your job right now for a long period of time? Humans are not infallible, but they are smart when they plan. Ready to get started? Give us a ring.