The Forgotten Insurance - Disability Income

When most of us think about the month of May, weMaking matters worse, the current economic
envision Cinco De Mayo, Memorial Day, May Dayconditions have lead many to deplete their savings.
(Beltane), or even the end of the school year, butThat along with decreased home values leaves even
have you thought about buying Disability Insurance?less to fall back on in the event of a disability.
According to the LIFE Foundation - a Non-ProfitMany assume that government insurance like
Organization that promotes education and financialWorker's Compensation or Social Security Disability
literacy about Life and Disability InsuranceInsurance (SSDI) will protect them. The reality,
(LifeHappens.org), May is Disability Insuranceaccording to the National Safety Council and JHA, is
Awareness Month (DIAM). Disability Insurance is thethat over 95 percent of long-term claims due to
type of insurance that pays in the event that youinjury or illness occur outside the workplace -
become ill or are hurt and unable to work for anexempting them from Workers' Compensation
extended period of time.coverage.
Most Americans pay little or no attention to thisAdditionally, about 60 percent of those who apply for
valuable and important type of insurance. The biggestSSDI are initially denied. Those that do end up
reasons seem to be because we all think a disabilityreceiving benefit often have to wait five months of
won't or can't happen to us.longer before payments begin. To make matters
Now more than ever, Americans need to recognizeworse, SSDI payments average just over $1,000 a
that the ability to earn an income is the greatestmonth - could you live on $12,000 per year?
asset they have. Unfortunately, many don't leavingSo what should you do? First, find a qualified and
themselves open to great personal and financial risk.reputable "Financial Professional" that specializes in
According to the U.S. Commerce Department,disability insurance. Be sure to interview them and
National Association of Insurance Commissioners, andcheck their license and professional association status'.
America's Health Insurance Plans nearly:Second, complete a needs analysis with your
• 1 in 3 will suffer a disability of three or more"Financial Professional" to determine the financial risks
months during their working careers.should you be disabled. This should include all available
Those are the types of odds that you don't want toresources and monthly expenses to determine your
bet against. The numbers for even longer durations"income gap".
of disability aren't much better -Finally, take action. Once you have determined your
• 1 in 5 workers will be disabled for one or moreneed, implement a plan that provides the protection
years,you and your family need. No matter how good the
• 1 in 7 face the risk of a disability lasting five orplanning is, without action it is worthless.
more years.