Disability Income Insurance
Think of it as insurance for your paycheck. It ensures that if you are unable to work because of an illness or injury, you will continue to receive an income and make ends meet until you are able to hopefully return to work.
Ask yourself – without your paycheck, how long would you be able to make your mortgage or rent payment, buy groceries, pay your credit card bills or simply provide for your family without feeling the financial burden? That’s where disability insurance comes in. Think of it as insurance for your paycheck. It ensures that if you are unable to work because of an illness or injury, you will continue to receive an income (usually anywhere from 45 to 65% of your gross income on a tax-free basis) and make ends meet until you’re able to hopefully return to work. Your everyday life and future plans could quickly be affected. Your income provides the foundation for life as you know it. It allows you to meet your financial obligations, save for the future, and enjoy life’s simple pleasures such as a family vacation.
Who needs Disability Insurance?
Simple, if you have a job, you most likely need disability insurance. The possibility of a disabling illness or injury may seem unlikely, but statistics say otherwise. The Social Security Administration Fact Sheet dated February 7, 2013 shows that just over 1 in 4 of today’s 20-year-olds will become disabled before reaching age 67.
Most of us have some kind of personal debt, such as a mortgage or credit card bills. Would you be able to maintain your standard of living if you were too ill or injured to work for an extended length of time? Plus, a disabling injury or illness could lead to medical bills, modifications to your car, home, or other unforeseen needs that can be quite expensive.
It’s also very important to think long term. How much do you earn in a year and what would that be over a lifetime. For example, a 30-year-old worker who makes $60,000 a year and suffers a permanent disability could potentially lose over 2 million in future earnings.
Do you own a business?
Only you know how hard you have worked to grow and preserve your business. You’re the heart of your business. You wear many hats, pouring everything into making sure your customers are satisfied, bills are paid, phones answered and employees paid. You’ve built something you and your employees are proud of. Imagine how things can easily change if a tragedy occurred and you weren’t able to meet your ongoing financial obligations due to an unforeseen disability. Even the thought is not worth going a day longer without having security and peace of mind of knowing you are properly insured.
For all these reasons, almost anyone who works- whether they are single, married, someone with dependents, business owners – should all consider a disability insurance plan.