We often take steps to secure our financial future by drafting a will, creating an estate strategy, and purchasing life insurance. Yet, one critical form of coverage frequently overlooked is disability insurance—the protection that can help maintain your income and quality of life if you become disabled.
The Financial Impact
Consider this sobering statistic from the Social Security Administration: 25% of Americans in their 20s may become disabled before they reach normal retirement age. If you become disabled and unable to work, your income stops, but your expenses do not. In fact, due to medical treatment costs, your expenses may even increase.
The Role of Disability Insurance
Disability insurance is designed to replace a portion of your income if you are unable to work due to illness or injury. This coverage is issued by participating insurance companies, but not all policy types and product features are available in every state. The ability of the issuing insurance company to continue making claim payments is critical to the value of this protection.
Can You Rely on Government Assistance?
Many people assume that if they become disabled, the government will take care of them. However, the reality is often quite different. Many disabled individuals discover they don’t qualify for state assistance. Others find that the amount or duration of government benefits is insufficient to support them adequately.
Why You Should Consider Disability Insurance
The reality is that disability can happen to anyone. If it does, will your family be taken care of? Will you be prepared to cover your expenses without your regular income?
Securing this type of coverage can offer peace of mind, knowing that you have a safety net in place should the unexpected occur. Don't wait until it's too late to consider disability insurance. The sooner you understand your options and secure coverage, the better prepared you'll be for any unforeseen circumstances.
Ready to Schedule a Meeting?
Click here or the photo below to schedule an in-person, virtual, or phone call meeting.
We look forward to working with you!
Source: SSA.gov, 2024.