Good Insurance Information to Know
We want you to be informed. These articles may answer some of your insurance questions but the best way to get the answers you need is to talk to an informed agent from FSC Insurance Agency. Call, e-mail or stop by today!
Who Needs Disability Insurance?
Americans count on dying more than they count on being disabled. The truth is, you are more likely to become disabled during your prime working years than you are to die. We protect ourselves against dying, but not against losing our greatest asset:
Our earning potential.
To put it bluntly, when you die, you no longer have expenses. When you are disabled, you still have living expenses, now compounded by medical expenses. You've got either rent or a mortgage to pay, food to buy, a car to maintain, utilities to pay and perhaps your chudrens' college education to worry about. One out of every seven people become disabled for at least five years before reaching the age of 65. Between the ages of 35 and 65, statistics show that one out of every five people will become disabled. That's where DISABILITY INSURANCE comes in.
WHAT IT IS:
Disability insurance is a type of insurance you may be able to get through your employer or that you can purchase on your own. Just as with life insurance or
mental reason, you are paid a certain amount in benefits each month.
"You have to be a wise consumer and look at the different products," says Jennifer Sheehy, Vice President, Director and CEO of the Council for the National Organization on Disability in Washington D.C. There are numerous types of disability insurance, from bare bones policies to those with options galore.
Your individual coverage will determine when your benefits actually begin, how much you receive, the limitations on your coverage and how long you can receive benefits.
WHO NEEDS IT
Determining whether you need Disability Insurance is a personal choice. You must decide how much financial risk you are willing to assume should you suddenly find yourself unable to work for an extended period of time. How many months can you rely on your savings? Can your spouse's income cover the 1st salary?
Disability Insurance is not really intended to cover a short-term injury or illness. Instead, experts advise using your savings to live on for a couple of months, even selling a mutual fund or stock if necessary, to cover short term illness. If you become disabled for an extended period of time, you may want to consider having a Disability Insurance policy in effect.