Take a moment to consider this scenario. Starting tomorrow, you’ll no longer be receiving your paycheck.
It isn’t because you’ve lost your job; it’s because a sudden illness or accident prevents you from showing up to work and earning that paycheck.
Think it can’t happen to you? Think again. You have a three in 10 chance that you will be faced with being out of work for three months or more during your career due to a disabling illness or injury, according to the consulting firm Milliman Inc.
So, your paycheck has stopped. How would you continue to pay your mortgage or rent, buy groceries and pay your monthly bills?
If you answered “dip into savings” or “rely on the government” you may be in for a surprise. Instead, your answer should be: disability insurance. Here’s why.
Savings may not cut it. Most people overestimate what they have to cover their expenses if a disabling illness or injury kept them from earning a paycheck. According to a LIFE Foundation survey, half of working Americans say they couldn’t make it a month before financial difficulties would set in. Keep in mind that disabling illnesses or injuries often last for months or even years.
The government may not be there for you. According to the National Safety Council, 90 percent of long-term disabilities are a result of an injury or illness that is not work-related and therefore wouldn’t qualify for state-based Workers’ Compensation programs.
And if you were hoping for Social Security disability benefits, know that about 65 percent of those who apply are initially denied, and those who are approved receive an average monthly benefit of just $1,065, which would leave you with an income barely above the poverty line.
That’s why it’s important to have disability insurance. Think of it as insurance for your paycheck. It provides replacement income in case an illness or injury prevents you from working, and it helps you make ends meet until you’re able to return to work.
Take Action
Your next step should be to find out if you have disability insurance coverage through work, and if so how much. Keep in mind that according to the Social Security Administration, 69 percent of workers in the private sector don’t have long-term disability insurance. And short-term or partial coverage wouldn’t be enough if you were unable to work for an extended period of time.
Then you need to find out what your disability insurance needs truly are. Use the free, online Disability Insurance Needs Calculator from the LIFE Foundation, at www.protectyourpaycheck.org, to get a quick snapshot of your situation.
Once you have a sense of your need for disability insurance, it’s important to speak with an expert in your community. With so many options to weigh, an insurance professional will be able to explain the various features of disability insurance policies and help you strike the appropriate balance between the benefits you desire and the money you have to spend.
Showing posts with label disability insurance. Show all posts
Showing posts with label disability insurance. Show all posts
Wednesday, May 4, 2011
Friday, May 14, 2010
May Is Disability Insurance Awareness Month
How would you like to receive an extra paycheck? I’m affiliated with the LIFE Foundation, a nonprofit insurance education group that is sponsoring the “Where Did My Paycheck Go?” Challenge during the month of May. Entering this contest is simple: You will be asked to take a minute to think about your paycheck and where all your hard-earned money goes.
Why all the attention on your paycheck? Well, many people don’t realize that just as they protect their cars and their homes with insurance, they need to be insuring another valuable asset—their paycheck. 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 illness or injury, you will continue to receive an income, enabling you to make ends meet until you’re able to return to work.
To enter the “Where Did My Paycheck Go?” Challenge, go to www.protectyourpaycheck.org. One lucky entrant will be chosen at random to win a “bonus paycheck” in the form of a $1,000 American Express gift certificate—Here’s hoping that it’s you!
May is Disability Insurance Awareness Month, the ideal time to make sure that your paycheck is properly protected with disability insurance.
Why all the attention on your paycheck? Well, many people don’t realize that just as they protect their cars and their homes with insurance, they need to be insuring another valuable asset—their paycheck. 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 illness or injury, you will continue to receive an income, enabling you to make ends meet until you’re able to return to work.
To enter the “Where Did My Paycheck Go?” Challenge, go to www.protectyourpaycheck.org. One lucky entrant will be chosen at random to win a “bonus paycheck” in the form of a $1,000 American Express gift certificate—Here’s hoping that it’s you!
May is Disability Insurance Awareness Month, the ideal time to make sure that your paycheck is properly protected with disability insurance.
Monday, September 28, 2009
Avoiding Financial Ruin with Disability Insurance
You likely already have life insurance to protect your family against the financial adversity they could face after your unexpected death. And you've probably insured your home, cars, and other personal possessions against the financial loss that can result from fire, theft, or damage. But what have you done to protect yourself and your family against an injury or sickness that affects your ability to work? Do you have disability insurance?
The reality of how long you and your spouse could stay afloat if one of you were to lose your income due to a disability is sobering. On one income you may no longer have the ability to pay your mortgage, car payments, and other bills. If you are without disability insurance, tapping into home equity, retirement savings or credit cards can offer a temporary solution with damaging long-term consequences. Disability insurance offers an affordable method to maintaining your lifestyle without creating additional debt for your family.
There are many different ways to obtain disability insurance. You may have group coverage at work, through unions or membership groups and, depending on the nature and cause of your disability, you may also qualify for workers' compensation, Social Security, and veterans' benefits. Without the benefit of group insurance, individual coverage is a must.
There are many different types of disability insurance contracts and several definitions of disability. Consider whether you contract includes:
A favorable definition of total disability that is consistent with the risk of your occupation and, at a minimum, ensures the payment of benefits in the event you suffer a "loss of income."
A non-cancelable, guaranteed renewable clause that states the insurance company cannot cancel the policy or increase the premium until a certain age (as specified in the policy).
Benefits that are payable until age 65 or later.
A waiting period consistent with your overall financial plan. The longer you wait to receive benefits after your disability, the lower your premium. You can purchase coverage that provides benefits on the 31st day of disability or up to two years later. Whichever option you choose, make sure you can handle the financial exposure.
The reality of how long you and your spouse could stay afloat if one of you were to lose your income due to a disability is sobering. On one income you may no longer have the ability to pay your mortgage, car payments, and other bills. If you are without disability insurance, tapping into home equity, retirement savings or credit cards can offer a temporary solution with damaging long-term consequences. Disability insurance offers an affordable method to maintaining your lifestyle without creating additional debt for your family.
There are many different ways to obtain disability insurance. You may have group coverage at work, through unions or membership groups and, depending on the nature and cause of your disability, you may also qualify for workers' compensation, Social Security, and veterans' benefits. Without the benefit of group insurance, individual coverage is a must.
There are many different types of disability insurance contracts and several definitions of disability. Consider whether you contract includes:
A favorable definition of total disability that is consistent with the risk of your occupation and, at a minimum, ensures the payment of benefits in the event you suffer a "loss of income."
A non-cancelable, guaranteed renewable clause that states the insurance company cannot cancel the policy or increase the premium until a certain age (as specified in the policy).
Benefits that are payable until age 65 or later.
A waiting period consistent with your overall financial plan. The longer you wait to receive benefits after your disability, the lower your premium. You can purchase coverage that provides benefits on the 31st day of disability or up to two years later. Whichever option you choose, make sure you can handle the financial exposure.
Monday, July 6, 2009
Conseco Worksite Critical Illness
Conseco Worksite Critical Illness offers lump-sum benefits for today’s most common critical illnesses, including cancer, cardiovascular disease and major organ transplants. The product is available in three simple plan designs: cancer-only coverage, a critical illness without cancer coverage, and a critical illness with cancer coverage.
Conseco Worksite Critical Illness offers benefit amounts up to $75,000 (in $5,000 increments,) and guaranteed issue for coverage up to $20,000. Benefits are paid for diagnoses in three Health Diagnosis Categories (HDCs): heart attack, stroke; end-stage renal failure, major organ transplant and loss of sight; and cancer. The coverage pays first diagnosis and recurrence benefits in each HDC. A return-of-premium or cash-value rider is available in certain states, and guaranteed issue is available for employer groups that meet minimum participation levels.
Conseco Worksite Critical Illness offers benefit amounts up to $75,000 (in $5,000 increments,) and guaranteed issue for coverage up to $20,000. Benefits are paid for diagnoses in three Health Diagnosis Categories (HDCs): heart attack, stroke; end-stage renal failure, major organ transplant and loss of sight; and cancer. The coverage pays first diagnosis and recurrence benefits in each HDC. A return-of-premium or cash-value rider is available in certain states, and guaranteed issue is available for employer groups that meet minimum participation levels.
Tuesday, March 31, 2009
Personal Disability Quotient
I’d like to introduce you to a new number that’s getting a lot of attention these days. It’s called your PDQ, or Personal Disability Quotient. And it represents your chance of having an illness or injury that could force you to miss work for an extended period of time.
It's an important number for you to know because so much depends on your ability to earn an income, from paying your mortgage to saving for retirement and your children’s education.
As your financial advisor, I recommend finding out your PDQ. It only takes a minute, and it can really help you get a better grasp of how much is at stake should you ever face a disability or extended illness. You can calculate your PDQ at http://www.whatsmypdq.org.
Katherine Wichmann Zacharias
www.kswz.biz
Follow me on www.twitter.com/TheWic
It's an important number for you to know because so much depends on your ability to earn an income, from paying your mortgage to saving for retirement and your children’s education.
As your financial advisor, I recommend finding out your PDQ. It only takes a minute, and it can really help you get a better grasp of how much is at stake should you ever face a disability or extended illness. You can calculate your PDQ at http://www.whatsmypdq.org.
Katherine Wichmann Zacharias
www.kswz.biz
Follow me on www.twitter.com/TheWic
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