Disability Insurance Why You Need Disability Insurance
Denial, not wanting to spend the funds, more denial are reasons workers fool themselves into thinking the disability insurance is not a high priority to invest their income. Alarming, the reality is a twenty-year-old worker have a twenty-five percent chance of being disability statistic.1 According to the Social Security Disability Insurance wage earners over the age of twenty will become disabled for three months or more during their working years.
Are you still in disbelief about the disability statistics published by the Social Security Disability Insurance? Consider the debilitating health struggle of all your friends, family, associates, and neighbors. When you reflect on the countless stories of injury, sickness, chronic medical conditions and mental illness that has affected the workers around you then the statistics posted by the S.S.D.I. are not so unbelievable; life happens.
A majority of workers realize the ability to earn a living is the most important asset they have yet they deny disability statistics. Sadly, over half of all bankruptcies are caused by medical bills. The monetary impact can easily send your household into financial ruin. If you do not have an endless supply of savings, then a medical or health condition will most likely leave you with money struggles.
Hopefully, I have awakened your failed sense of security, and you realize denial may not be your best option. If you do not have an endless supply of funds, then you need to buy a disability insurance policy.
Mistakenly, some people believe if they are disabled, not able to work then they will not spend as much income. The idea that you will not need more money of you are disabled is wrong. It is a misconception because if you are ill or injured your out of pocket costs seem endless. You will most likely need additional funds for help, medication and medical bills.
After you have read the alarming disability statistics you should now realize the importance of your most valuable working asset; you. If you are considering protecting your household, then you should obtain a disability insurance policy that best fits your needs.
The educational process of purchasing a disability insurance policy can resemble a foreign language crash course. Many times the terms and conditions of the disability insurance agreement appear overwhelming. Once you start reading about the terms and conditions of disability policies your head we most likely spin and spin. Please do not dismiss disability insurance because you feel overwhelmed.
Long-term disability insurance covers major medical issues such as cancer, heart disease, mental disorders, back pain and severe injuries. If you are not sure about what the disability policy covers then make sure to ask the insurance company. The insurance company should be able to provide you an answer in writing or convey where the terms and conditions are in their contracts.
If you are employed is with a company, they might offer group disability insurance rates. Disability insurance policy through a company usually offers a lower group rate.
You might think short-term disability insurance would but enough. Sadly, approximately 2 1/2 years is about the average time disabled Americans remain away from work. You need to protect your household from financial ruin you need to look at a long-term disability insurance policy that can cover you for a long period.2
You also need to ask your insurance agent questions;
If you became disabled is your policy taxed?
Can you receive long-term disability payments and Social Security Disability Insurance (S.S.D.I.)?
What is the insurance company’s rating? Is there a cap on the policy?
If you still have not found that pot of gold you should calculate how much income you will need until you turn 65 years old. After you turn 65 years old, Social Society will begin, and the Disability Insurance policy (insurers) end your disability insurance policy. At the age of 65, you will most likely be able to obtain Medicare coverage to cover your medical care.
Unfortunately, the odds of one in four are real. You always think it can not happen to me; it can. You can read my journey with disability insurance and a serious life threatening illness, here.
Resources: 1. https://www.ssa.gov/pubs/EN-05-10029.pdf