While statistics may vary as to how many, and at what ages it occurs, many people during their working years will experience a loss of income, due to an accident or major health impairment—some for weeks, many for months, and a surprisingly large percentage for one year or more.
HOW PREPARED ARE YOU?
If you were to become temporarily or permanently disabled, what would happen to your lifestyle? How prepared are you to potentially have to face such an unexpected loss of income? How about the additional unexpected expenses which occur because of such an extended illness or accident?
Additionally, if you have your own business, how will you pay your employees, rent, utilities, etc.?
PROTECTING YOURSELF VS. PROTECTING YOUR STUFF
Surprisingly, while most people insure their home, cars, boat, and other expensive possessions, very few insure their income—which is what enables them to buy the day-to-day necessities and luxuries of life.
Consequently, when you personally consider the statistical probability of such an ugly occurrence, and contemplate how you would financially take care of yourself should it happen to you, you may want to consider disability insurance (also known as income replacement insurance).
WHAT DOES IT COST?
That depends on what your occupation is, and how much income you need. Additional factors include when you want it to start paying and for how many years.
IF YOU ALREADY HAVE DISABILITY INSURANCE
It may be of benefit to review your current policy, to see how it compares with the favorably updated policy provisions now available with recently introduced products.
How does your policy define “disability”? Is it non-cancelable or guaranteed renewable? Is there a return-to-work or rehabilitation provision? Does it provide benefits for partial disability? If you need to change careers after your recovery, what’s the definition of occupation: own, transitional, or any occupation?
PROTECTING AGAINST A CRITICAL ILLNESS
How prepared are you to financially cope if you have a heart attack, stroke, kidney failure, organ transplant, Alzheimer’s disease, coronary artery bypass graft, aortic surgery, heart valve surgery, angioplasty, severe burns, loss of sight or hearing, multiple sclerosis, or most cancers?
No one can dispute that the associated expenses of any of these can disrupt the finances of most everyone. Fortunately, there is another very important, and relatively new, disability-related coverage you may not be aware of, which can help with such costs and offset one’s loss of income.
However, unlike income replacement insurance, you do not have to be disabled to collect. Moreover, you do not need to be employed to apply for this kind of coverage. It is called critical illness insurance.
Its limits are purchased in lump sums, typically from $10,000 to $1 million. Different than an income replacement policy, this type of insurance pays a lump sum for various illnesses, like those mentioned above.
INTERESTED?
If you are interested in learning more about either of these insurance options contact us by phone, e-mail, or online. You are under no obligation by doing so.
