We all take steps to insure our health, our life, our cars, our homes, but are we overlooking one of the most important items to our financial future? Our Income.
Disability Insurance also known as income protection is one of the most important steps towards ensuring your financial future, but also one of the most commonly overlooked. Without some kind of income protection, many are risking severe financial difficulty in the event of a long term absence from work due to illness or injury.
It may surprise you to learn that one in four of todays 20 year olds will be out of work for at least a year because of a disabling condition before they reach retirement age. These odds increase with age. Also the financial impact of a disability is one of the leading causes of home foreclosure and bankruptcy. Simply said, the financial consequences can be devastating.
It may also surprise you to learn that most disabilities are not work related so they are not covered by Workers Compensation, nor are they immediately qualifying for Social Security Disability benefits. Less than 1% of disability absences are due to work related injuries. Non work related injuries, arthritis, back pain, along with serious illnesses such as cancer, heart disease, diabetes, and more cause the majority of long term disability claims. Considering the average length of a long term claim is over 34 months, most Americans also don’t have emergency funds to last nearly that long.
The good news is that disability insurance has long been viewed as one of the best values in employee benefits. The average annual premiums for group disability is less than $400 per person, yet can provide income for 10, 20, 30 years and beyond. Preserving your ability to provide an income can be an essential to your financial future.
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