The Importance of Disability Insurance
Posted by Tom Carolan on Wed, Nov 18, 2009 @ 11:22 AM
Your earned income is, in all likelihood, the financial footing that you and your family depend on to pay the bills, put food on the table, keep a roof over your head and pay for many other things in your life. What would happen if you could not earn that income because of serious illness or injury? Disability income replacement insurance exists for just such a situation and provides security when you need it most.
The Likelihood of Disability
Chances are high that you or someone close to you will face disability that affects income-earning potential. In fact, today 1 in 8 people will face disability at some point in their life. Out of every 70 car accidents that occur, one will result in either death, injury or disability. Life insurance will take care of those left behind in the case of death. However, injury and disability can permanently change a life and are more common than most people realize.
The Consequences Of Disability
The results of your income being majorly disrupted by disability are devastating. An overwhelming 48% of home foreclosures are due to disability of the major income provider in the household. Only 4% of foreclosures are because of the death of that person. Your personal savings could be completely eroded in a very short period of time. Even if you were to put away 5% of your annual income for 10 years, major disability could deplete that savings entirely in 6 months.
What You Need In Case Of Disability
If you are a business owner you need to face the fact of what would happen with your business if you were unable to work. Could your firm afford to pay a replacement for 6 months or more? If so, could it pay you also? How much does your firm need to stay in business? Can that amount be generated without you? Is there a plan in place for your business should you be unable to run it?
How much money does your family and household need monthly? Do you have an alternate source of income to meet such needs, and additional medical expenses, if you are disabled? Would you be able to meet your family monthly needs on your spouse's salary? How long would it take your spouse to get a job that would completely replace your income? If you could liquidate your assets quickly, how much would you get and how long would it last?
These are all valid points to consider, both in terms of business expenses for business owners and living expenses for everyone. These questions point to your need for disability income replacement insurance. Such insurance would cover these expenses and others when you cannot earn the money to do so. If you are ill or injured, the last thing you need to worry about is where money is coming from to meet your obligations. That's why disability insurance is the financial tool you absolutely need to have to create the kind of security you deserve.
More Information:
Disability Insurance For Dentists
Disability Insurance Quotes