It is estimated that your chance of becoming disabled during your working years is three times greater than your risk of death. A disability can happen to anyone. If you were unable to work and provide an income for your family, what would happen? It is a scary question and the answers we receive are even more disturbing. Very few people are prepared.
What Would You Do if Your Paycheck Stopped Tomorrow?
Many people are under the impression that if they become disabled that they can receive disability benefits from Social Security. The fact is that almost 66% of initial claims are denied by the Social Security Administration.
Most people only have enough savings to last for a few months. So then what do you do? It is therefore not hard to see why a disability of a family’s primary wage earner is one of the top reasons for foreclosure and bankruptcy.
When Are You Considered Disabled?
To be considered disabled by Social Security, individuals must have an impairment, either medical, psychological, or psychiatric in nature. It must also keep them from being able to do substantial gainful activity and this must last for at least 12 months, or be expected to keep you from any substantial gainful activity for at least 12 months.
When you purchase a personal disability insurance policy, the definition of disability will vary greatly according to your age, occupation and the contract you apply for.
People have this image of the person sitting in the wheel chair when they think of disability. However, sicknesses such as cancer, are equally, if not more, debilitating than a physical injury.
Real Life Story
Bob worked as a successful landscaper for 12 years. One day on his way home from a job his car was hit by a drunk driver traveling at almost twice the speed limit. Bob would never walk again and suffered a brain injury that left him cognitively impaired.
He had no disability insurance and very little savings. After several attempts he finally did qualify and receive social security disability benefits, which were much less than what he was actually earning before the accident. Eventually, Bob had to sell his home and move into a rental, he took his children out of private school and learned to get by on a lot less. He also realized he could no longer fund his retirement plan.
In hindsight, Bob could have purchased a personal disability income policy to not only protect his income but to fund his retirement account.
What Does Disability Insurance Cost?
Some of the Factors that determine cost are:
- Your gender
- Your occupation
- Your age
- Your income
- Your medical history
- Your height & weight
The Goose or the Golden Egg?
We have all heard this story before and it directly relates to disability insurance. We spend thousands of dollars each year to insure our homes, cars, boats etc. but people hesitate to even consider purchasing disability insurance on the person that buys all these nice things…YOU!
Call us today to set up an appointment to discuss ways to protect you and your family from an unexpected disability.
We look forward to hearing from you.