What is "Living Death Insurance"?

Life Insurance

If you answered disability insurance you would be correct! So why is disability insurance sometimes referred to as “living death insurance”? The easiest way to answer this question is to compare, for a moment, the devastating financial effect that the death of a loved one can have on a family. Especially, if the person failed to have the appropriate amount of insurance coverage in place to replace income or services.

When a spouse passes away, we not only lose potential future income, but we also lose that person’s potential ability to accomplish other tasks such as raising children or cleaning the yard, home or car, just to name a few. However, on the flip-side, the person that passed away will not incur future expenses for the remaining family (outside of maybe a funeral or personal debt). The family will no longer need to pay for food and clothes for the deceased, or other aspects of their livelihood.

Just imagine the tragedy a family will face financially, when a person becomes disabled! Not only will the person’s income stop because they can no longer work, but their physical, emotional, and perhaps spiritual contributions to the family will also more than likely be reduced. Add the fact that the disabled person could then potentially suffer depression because of their inability to accomplish what they used to. This could cause loss of self-esteem, and becoming easily angered or frustrated, while perhaps causing the same to happen to family members that might have to take care for them, and maybe resulting in a recipe for “living death.”

Unlike the death of a person, their livelihood expenses are SUBTRACTED from the remaining family’s financial obligations, a disability would create the opposite situation and ADD living expenses to the family, usually in the form of medical care and/or equipment! In my opinion, not having a disability plan of action in place is one of the biggest mistakes a family could ever make!

For middle and lower income American families, if paychecks stop coming in, so does their ability to pay the bills! Unfortunately, not many have enough savings to make ends meet if they should lose their income for more than even just a few weeks, never mind months or years. By depleting savings to pay monthly bills,  other plans and priorities will be set back, perhaps for years. Income protection is about knowing we can meet our obligations and protect future plans.

About the author: Kyle McDonald holds FIC, FICF, FSCP® & CLTC designations. His viewpoint on life insurance is simple, “Anyone with a family must have life insurance. In the end, life insurance is for others you care about, not you.” He is ready to help you and your family get the best option available. Contact Kyle today at   1-800-651-1953 or KMcDonald@Pivot.com.