The Importance of Having Disability Insurance

The Importance of Having Disability Insurance

Owning life insurance, for most, is a basic necessity to make sure we’re covered for a catastrophic loss. It seems we’re all resigned to the fact that someday we will pass away. Very few people believe that they’re ever going to be in an accident or become disabled. According to the US Census Bureau for Disability [i], more than 45% of employees admit to living paycheck to paycheck. What would happen if you didn’t receive a paycheck for an extended period of time? How would you replace your lost income? Perhaps with retirement savings, or maybe borrowing money?

3 in 10 workers entering the workforce today will become disabled before retiring [i]. 62% of all bankruptcies filed in the US in 2007 were due to a medical cause [i]. We insure our homes and cars, yet we don’t think about disability insurance. Think of what your income helps you accomplish: covering everyday expenses, funding your family’s lifestyle and building your financial future.

Now consider what would happen if you lost that income. Could you pay for necessities like your mortgage or rent, car, food and clothing? Which parts of your normal lifestyle would become luxuries: family vacations, eating out, cell phones, cable TV? Would you have to give up future savings goals, such as retirement or your children’s education? Don’t leave everything you’ve worked so hard for to chance. Life insurance can help protect you.

Less than half of consumers are actually covered for a loss through their group coverage at work, and if they are and leave that job, the coverage is not portable. Some group policies also limit the time you can receive benefits. Given these shortcomings with group disability insurance, it is more critical than ever to consider protecting your family against a disability and the loss of income. Owning disability insurance will help provide your family with the support and protection when you need it the most.

[i] http://www.census.gov/people/disability/publications/sipp2010.html

About the author: Mark Yurkovic has been in the life insurance business for over 12 years, and holds CLTC, LUTCF, and CES designations. He enjoys building remote control boats, and playing instruments including the piano, guitar, banjo, and mandolin. Mark would love to discuss life insurance options and work towards finding the best policy fit for your family. You can contact Mark at 1-800-651-1953 or MYurkovic@Pivot.com.