Disability Insurance: Protecting Your Way of Life
As a twenty-nine year old, protecting myself from a disability didn’t even make my priority list; I can honestly say that it was not even something I had given a second thought. That was until I listened to Robert’s story . . .
It was the most wonderful time of the year. Each year, mid-November, Robert took out the ladder and strung white lights on the house; his wife, Sofia and their two young boys joked that Robert’s determination to have the most decorated house on the block, reminded them of Clark Griswold from a family holiday movie favorite. However, this year was different; Robert headed out with his coils of lights and a ladder but on a trip up the ladder, he lost his balance and fell 15 feet to the ground below. Sofia immediately called for help and Robert was rushed to the emergency room. After x-rays and evaluation the doctors determined Robert had suffered a fractured right hip and a broken wrist. Robert’s recovery would be extensive as he would not be able to return to work for at least six weeks.
How would his family survive without his income? How would they cover his medical bills? Robert was the family breadwinner taking home just over forty thousand a year as a postal worker. His wife had just reentered the workforce after taking care of their two boys and was working as a substitute school teacher with variable pay.
Like the majority of disabling injuries or illnesses preventing Americans from earning a paycheck, Robert’s injury happened off-the-job; disqualifying him from receiving Workers’ Compensation Benefits.
The struggle Robert’s family faced made me question my lack of planning in the event something was to happen and I was unable to earn a paycheck. Of course, I had many questions and I knew just who to ask! As a member service representative, I see Marcus in the credit union lobby providing support to our members on a daily basis. Instead of simply referring people to Marcus, our PFP | The Family Security Plan® Representative, I decided to take my own advice. Why would someone as young and healthy as myself need disability insurance?
Marcus answered my questions and now I pass what I learned to you!
- What is disability income insurance?
- Disability Income Insurance pays a benefit in the event of a disabling illness or injury. A percentage of your earned income is covered. Generally speaking, benefits paid on an individually owned disability income policy are tax-free. The benefit can help protect you income and allow you to maintain your accustomed standard of living.
- Do you or do others depend on your income?
- If so, you realize that any significant time period without an income would have a significant impact on your finances.
- Most long-term work absences are due to illness, not accidents.
- Long-term illness or non-work related accidents are not covered by Workers’ Compensation.
- Statistically, 25% of employees in their 20s will become disabled before reaching retirement age.
- Did you know that the younger and healthier you are, the less expensive your monthly premiums for disability insurance?
- How much disability insurance will meet your needs?
- Every individual / family unit will have a different need and budget. A general rule of thumb is to have enough to cover 60-80% of your annual, after-tax income. These funds can be used to cover everyday living expenses such as rent / mortgage payments, food, health care, education.
- Be prepared when meeting with an insurance representative.
- LifeHappens.org provides a useful Disability Insurance Needs Calculator to help you organize your expenditures and income.
The needs gap is large; Almost half of American adults indicate they can’t pay an unexpected $400 bill without having to take out a loan or sell something to do so.* Don’t let you or your family become a statistic.
We are here to help!
PFP The Family Security Plan’s® Disability Insurance gives people just like you the ability to protect your income and standard of living in the event of a disabling illness or injury. For more information on how PFP | The Family Security Plan® portfolio of insurance products can provide financial security to your family, we are here for you.
Let us help provide peace of mind for your family. For more information, visit PFP | The Family Security Plan®’s Disability Insurance page or call 855-789-4976 to speak with a dedicated PFP | The Family Security Plan® Representative.