Imagine what would happen if your ability to earn income suddenly disappeared. What would your life be like? Even though your income would stop abruptly, your living expenses would continue. The mortgage and care payments would still be due, and missing several payments could result in foreclosure or repossession. You and your family would still need to eat, use electricity, heat your home, etc. How would you cope?
The Need for Disability Income Protection
You might have enough savings to cover a month or two living expenses if you become disabled because of sickness or injury. Health insurance will take care of your medical needs, but it will not replace your lost income. Social Security may help provide some amount of income replacement, however, you must wait six months after your disability before any benefits can be paid, and many claims except for the most serious disabilities are denied.
The statistical evidence on disabilities is sobering: Between the ages of 35 and 65, there is a 30% chance of suffering a disability lasting three months or more, and should you suffer a disability lasting longer than six months, there is a 30% chance that the disability will last longer than fiver years (Commissioner’s Disability Table A, Society of Actuaries).
The best way to protect yourself from the financial harm that a disability can cause is to purchase disability income insurance. Disability income insurance is designed to replace lost income in the event that a disabling illness or injury prevents you from working. It makes an enormous difference at a time when you should be focused on your health and recovery – not on how your bills are going to be paid.