Most people don’t realize the risk of becoming disabled, permanently or temporarily, at some point in their lives. But the reality is that more than 1 in 4 individuals will become disabled before they reach retirement age.
If you were to become disabled, how would you pay your bills? Would you be able to keep a roof over your head? Would you be able to buy groceries, make your car payment, provide for your children or save for retirement?
For most, the answer to all of these questions would be: no. However, there is a better answer: disability insurance.
What Is Disability Insurance?
Disability insurance is a policy that makes periodic payments to an insured who is unable to work due to a disability. It is designed to replace anywhere from 40% to 65% of a worker’s income in the event he or she is unable to work temporarily or permanently due to a disability.
Do You Need Disability Insurance?
Many people believe they will never become disabled, but the statistics show that more than 25% of workers aged 20-60 will become disabled before they reach retirement age. Consider these facts:
- Only 5% of disabilities occur in the workplace, leaving 95% of disabilities not covered by Workers Compensation insurance. (source: Council for Disability Awareness)
- Social Security Disability Insurance (SSDI) pays an average of only $1,165 per month, barely enough to keep a recipient above poverty level. (source: SSDI Facts)
- According to a recent study, nearly half of all Americans live paycheck to paycheck, with less than $1,000 to their name at any given time. (source: Esquire.com)
Many employers offer disability plans as part of their benefits package, but these are not portable, so if you leave your job you lose the benefits. What’s an employee to do?
Ask Yourself These Questions
- Do I have enough money in savings to cover medical expense, household bills, and emergency expenses in the event I become disabled for a short time (less than 90 days)?
- Do I have enough money in savings to cover those same expenses if I become permanently disabled?
- Can my family survive financially if I am no longer earning an income?
Hayes Brokers has a staff of professionals trained to guide you through the process of selecting the disability insurance plan that is right for you and your family. Call today for a free, no-obligation consultation.