What if suddenly you were unable to perform any type of labor and therefore not be able to work/receive income due to an illness or an injury?
Suddenly without a source of income, you would have to resort to using your savings account to meet monthly obligations. Payments such as your mortgage, car payment, groceries, fuel, credit cards, amongst others will eat away your savings account quite easily.
According to CNN, 76% of the American population are living paycheck to paycheck. Reading this statistic should be enough premise for most of us to consider solutions to the potential loss of future financial gains. Enter Disability Insurance “Income Protection”.
What is Disability Insurance Income Protection
Similar to the insurance company that covers your car against potential damage to the vehicle or passenger, Disability Insurance Income Protection will cover your paycheck.
If you are unable to work due to an injury or illness, the insurance company will cover a portion or all lost wages until you can return to work.
Many people already insure a large portion of their belongings such as homes, cars, motorcycles, amongst other valuable properties. It is not far-fetched to insure the main reason why you can afford to pay insurance on all your other possessions – your paycheck.
Who Needs Disability Insurance Income Protection?
Anyone with a job is most likely in a position to take on disability insurance. Since all of us have a large possibility of becoming unable to perform work due to disabling injuries or illness, it should be in our best interest to insure our financial commitments are met.
“How To Insure Your Income,” is an article the group of Merritt Publishing editors published in 1997. It states that if you’re 25 years old, you have an 80 percent chance of experiencing a disability before age 65 that will keep you out of work for 90 days or more.
Since most of us have some sort of personal debt, car loan or mortgage and even credit card bills, it’s important to ask oneself about if you would be able to sustain you living standard if you were unable to work due to disability.
And if you do become disabled (which is not our wish), you may inquire medical bills that amplify quickly over time. You can potentially lose your home if your payments are missed, cars can be repossessed and other life situations can be modified.
Let’s look at the numbers. If a 25 year old earning $40,000 per year suddenly becomes disabled due to an injury or illness, assuming he/she could’ve worked another 40 years, that is a total of $1.6 million in lost wages.
If you’re single, married, with children or without, disability insurance income protection should be on your radar. It insures that you are taken care of.
How Much Does Disability Insurance Cost?
Individuals who buy disability insurance have different needs and incomes, they come to us to help them find the best insurance package for them.
There are two types of disability insurance, short-term and long-term. Short-term disability insurance provides you with payments if you are away from work for an extended period (26 weeks out of work as an example). Long-term disability insurance is designed to pay you perpetually if you are permanently out of work.
Tyler Insurance Group calculates the income you would need to maintain your current standard of living if anything should happen to you. We go through a thorough analysis that will provide you with insights into which insurance product to invest in to guarantee your peace of mind.
Originally posted 2016-03-08 11:23:03.