Why Disability Insurance is Essential for Your Family – Personal Branding Blog

Working your way to the bone is an unintended but apparently necessary professional philosophy. Most of the time, people don’t invest in themselves because life is geared toward working themselves to death nine-to-five. Therefore, it makes sense for people to invest in life insurance to protect their family and income in the event of death. But how about protecting yourself when you get sick or injured?

What is the most important asset in life for you? It’s probably your family. If you have children it is natural to take out this life insurance. But do you have disability insurance?

Why do you need disability insurance?

You are more likely to need disability insurance than you will die soon – and that by enforcing both policies, you will protect your income and your family. The average life expectancy for US residents is 78.7 years and 115 people die every day. Rising healthcare costs and the failure to take preventative measures are now lowering life expectancy.

Focusing on protecting your income while you are alive and getting sick or disabled is the best course of action when it comes to having all the basics covered for you and your loved one. In reality, inadequate disability coverage is the blind spot that poses the greatest danger.

Over 51 million US citizens each year do not have adequate disability insurance beyond what the Social Security Administration offers, and only about half of Americans have enough savings to cover three months of living without income. Here are some other statistics to consider:

• Almost half of Americans can only cover unplanned expenses over $ 400 by selling something or applying for a loan.
• Among 20-year-olds, around 25 percent will miss work for a year due to a disability before typical retirement age.
• Every year, 5.6 percent of employees have a short-term disability due to illness, pregnancy or injury, mostly not for work.

The most common causes of short-term disability claims are digestive disorders, musculoskeletal disorders, pregnancy, cancer, mental health problems, and other injuries such as sprains and stress. Many people file for bankruptcy due to medical bills, job losses, and injuries. One study found that cancer patients had the highest bankruptcy rates. Cancer patients were 2.65 times more likely to be bankrupt in Washington state.

Did you know it can take up to five months to make a decision on whether you are eligible for Social Security Disability Insurance (SSDI)? The processing time can be over a year. The SSDI services offered to many would bring them to or near the poverty line. As of January 2018, the average SSDI benefit was $ 1,197 a month, equivalent to $ 14,364 per year. As of 2016, only 1 percent of Americans hadn’t gone to work due to an accident at work or an occupational disease, so you can forget about compensation.

These statistics highlight a dire reality that you and your family must watch out for before paying with your health and fighting for a living.

What you should know about disability insurance

As a rule, there are two different types of disability insurance: long-term and short-term insurance. These types will replace your income up to a point, and some guidelines offer additional services, such as training, to get you back on track at work. For example, federal employees can earn up to 65 percent of their income up to a limit of $ 8,992 per month, and a premium waiver covers premium payments after six months of complete disability until there is no cash left. If you die, your loved ones will continue to receive benefits for the period covered.

Different providers also define “disability” differently. Some pay when you cannot do a job, others offer partial disability as you can work part-time. Others pay when you can’t do a job in your profession, while others pay when you can’t do tasks for a job you previously qualified for.

Long-term and short-term disability insurance usually pays up to 60 percent of your basic income, but long-term coverage usually pays a lower percentage. Short-term policies are typically a year or less with a two week waiting period, while long term policies are years or until retirement and have a three month waiting period. Each policy differs depending on the provider.

Find the right fit

Check with your labor representative at work to see if you have access to employer-sponsored coverage or if you can purchase a plan through your employer. A professional association you belong to may also offer a group disability insurance policy. When shopping for your own policy, like any other insurance transaction, you are using a broker.

Review all offers before making a decision, and be sure to shop around. Some guidelines allow for customization, such as: B. Annual cost of living adjustments. You are more likely to be disabled than to die. So make the essential investment in disability insurance to protect your most important asset in life.