Most people are reliant on a steady income in order to live comfortably. What happens if you are injured or become ill, and your benefits through work are not enough?
According to the Social Security Administration, at 20-years old, more than 1-in-4 people will become disabled before reaching retirement age. In addition, 56 million Americans live with disabilities. As a result, they will need to rely on Social Security and Disability benefits.
Here are 5 reasons you should consider an individual long-term disability insurance policy:
1. YOU HAVE A FAMILY
Okay, let’s face it. Whether you’re the bread winner or not, you probably contribute funds to your household expenses. Children can be … pretty expensive. If you were to fall ill or become injured, can your family continue to live comfortably? How would your children’s futures be affected if you were to suddenly unable to work?
2. YOUR EMPLOYEE BENEFITS ARE INADEQUATE/INSUFFICIENT
You probably already have some sort of disability benefit with your employer. This perk is typically of little cost or free. However, some employers only offer short term disability, or reimburse for less than 60% of your salary, which may not be sufficient.
3. YOU HAVE DEBT
If you lost your income source temporarily, would you be able to cover your debt obligations such as mortgage, car loans, or student loans? Obtaining disability insurance could potentially help you avoid delinquencies or even foreclosure, should you find yourself unable to work due to illness or injury.
4. YOU DON’T HAVE A SAVINGS
For most, a short term disability wouldn’t necessarily break the bank. However, if you were injured and had to live off of your savings for the next couple of years, would you be able to live within your means? For some, the answer is no. Even if you do have a savings, chances are you weren’t saving in preparation for a serious injury or illness. By purchasing an individual disability policy you are insuring your income, while keeping your savings intact.
5. YOU HAVE A PREDISPOSED CONDITION
Predisposed conditions are among the leading causes of disabilities. Your family may have a history of cancer, diabetes, strokes, or some other serious illnesses. If this is the case, you could be vulnerable to these conditions in the future which could result in a leave of absence from your job. If it happens, your benefits through your employer alone may not be enough.
If any of these scenarios above apply to you, then you should consider getting a quote. The cost depends on various factors such as age, health, occupation, etc. The annual price generally ranges from 1% - 3% of your income. When you deal with an experienced broker, you can craft a policy that is competitive by working with the carriers to include discounts or exclude riders/optional coverage. Questions? Let’s talk.
Opinions expressed in this article are solely the author’s opinion, not intended to provide the reader with legal or any other professional advice. Should you need advice or opinion, consult with a qualified professional to address your specific needs.