Disability Insurance: The "I'll Never Need It" Insurance

Anne Hussman |

Disability insurance could be the most important insurance you DON'T have.

Are you going to live forever? Of course not.  As someone said, "life is terminal - and no one gets out alive."  Most of us understand that and have accepted it.  We draft a will and an estate plan. We purchase life insurance.  But few of us consider disability insurance - the coverage that can help us maintain our income and quality of life while we are alive.

Do you think you don't need disability coverage?  Think again.  Statistics show that people in their 30s are three times more likely to suffer a long-term disability than they are to die.  A recent study showed that a 20-year-old worker's chance of suffering a disability prior to retirement was 3 in 10! While the bulk of those disabled may suffer their disability for about five years, approximately 30% of disabilities are permanent.

A fate worse than death?  In financial terms, maybe.  Consider this - when you die, your income and your expenses stop.  If you are severely disabled and cannot work, your income stops, but your expenses do not.  In fact, due to the cost of medical treatment, your expenses may even increase.

Will the government take care of you?  Many disabled people discover that they don't qualify for state assistance.  Other find that the amount of length of coverage available is not sufficient to support them.  It's an all-too-common story.

We'd all like to believe that we'll never be disabled.  The reality is it could happen to you.  If it does, will your family be taken care of?  Will you be prepared? It's time to start thinking about disability insurance. 

Bill Reid's Story

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