Disability Income

Your most valuable asset is not your house, your car or your 401K savings.  It is your ability to earn a living.  Have you ever wondered how people who are disabled pay their bills?  Have you ever wondered what the probability is that you might become disabled?

The risk of a disability that prevents you from working is very real.  A 35 year old worker is six times more likely to become disabled than die before he reaches age 65.  Amazingly, 43% of all people age 40 experience a long-term disability before they reach age 65.  Do you have a financial plan if you are hurt or ill and cannot work?

Neither Workers Compensation nor Social Security is the solution. 

The fact is that over 90% of disabling accidents are not work related and do not qualify for Workers Compensation.  To qualify for Social Security benefits, the disability must be so severe that you are unable to do any work not just the work you normally do.  Further, your disability must be expected to last at least 12 months to qualify for benefits.  Less than half of all Social Security disability applicants are approved and for those that are approved the benefits do not start for 5 months and on average are just $894 per month.

You really have just five choices as to how to deal with a disability.

1. Use Your Savings:  However, one year of total disability could wipe out as much as 10 years of savings.  If that happens, what would be left for the future or for retirement?
2. Sell Property or Assets:  However, the current economy, including the real estate market might not permit a sale for what your property is really worth.  Under a forced sale, the likelihood is that your assets will bring far less than their fair market value and still might not provide enough to pay your bills.
3. Live on Your Spouse’s Income:  In most two income households, expenditures and debts are based upon the assumption that both incomes will continue.  With half or more of your current household income gone, how would you make ends meet?
4. Borrow Money:  Even if you could obtain a bank loan without a job, the additional debt could compound your problem.  Friends and relatives may be able to help you temporarily, but for how long?

Disability income insurance is the only real solution. 

Leave your savings alone and hold onto the assets you worked so hard to get.  Keep the balance in your life with a solid plan of disability income insurance to assure additional income exactly when it is needed most.

Call us for a free quote.