Here’s a scary stat: the Social Security Administration reports that “a 20-year-old worker has about a three in 10 chance of suffering a disability before reaching retirement age.” And as you get older, those chances increase. Injuries can force workers into early retirement, whether or not they’ve got the savings to make it work. To protect yourself should the worst occur, workers should consider obtaining disability income insurance.
Disability income insurance provides income for workers who’ve suffered accident and illness related disabilities. Preparing to have a paycheck in place even when you can’t work keeps you and your family financially sound while you recover.
People often think that disability income insurance is only necessary for people with dangerous jobs, but most disability cases aren’t even work related. Illnesses are more likely to cause disabilities than accidents. And 70 percent of workers can’t cover their normal living expenses for more than six months without their income or disability insurance in place.
Paul Gada of the Allsup Disability Life Planning Center has a few tips for workers to consider –
1. If you are diagnosed with a chronic condition that might require you to stop working, start planning for that day as soon as possible.
2. In addition to collecting disability income insurance, one should minimize financial losses by developing a financial plan, establishing a budget and prioritizing expenses.
3. Pursue income sources. People with long-term disability coverage generally begin receiving benefits three to six months after the onset of a disability.
4. Don’t let health coverage lapse. Consider COBRA or buying individual health insurance on the private market.
If you’re interested in purchasing disability income insurance, Custom Health Plans offers Disability Income Protector for accident related disabilities and Disability Income Protector Plus for accident and illness related disabilities. Both plans allow for monthly payments from $500 to $5,000 and – if needed – can continue for one, two or five years. That money can ensure your family is taken care of while you recover from your injury or illness.