As a person in good health, you might be thinking that your chances of suffering from a disabling injury or illness are quite low. Yet, the odds are probably much higher than you think. One in four 20-year-olds entering the workforce will suffer from a disability before their retirement, which could result in loss of income. Would you be prepared if this were to happen to you?
May is Disability Insurance Awareness Month, so now is the perfect time to learn more about disability insurance. When we think about disabilities, we typically associate them with work-place injuries or freak accidents. However, according to the Council for Disability Awareness (CDA), 90% of disabilities are caused by illnesses (cancer, heart attack, diabetes) rather than accidents.
In a recent survey, the CDA found that there is a significant disconnect between the importance workers say income plays in their financial security, and what they actually do to protect it. In the 2014 America’s Income Protection Picture Disability Awareness Study, 67% of respondents listed their income as the most important thing in life, second only to the 84% that said their health was the most important thing in life.
However, out of those who said their income was most important, only 28% said it was worth protecting, ranking the protection of their health, home, and car above their income. The CDA offers these four tips to start learning more about the benefits of income protection:
- Gain a better understanding of how a disability could personally affect you and your financial security.
- Personal savings, vacation or sick time, and help from family and friends can only help so much in the absence of a permanent source of income. Review disability benefits offered by your employer or through an individual private plan.
- You need to be proactive in seeking out income replacement benefits before suffering an injury or illness, otherwise it will already be too late. Start protecting your income as early as possible.
- Talking with a professional can help you identify the right ways to protect your income and ensure you won’t be financially devastated by an illness or injury.
Talk with our account representatives to learn more about protecting your income. For more information on disability insurance, contact McGrath Insurance Group at 800-342-3859 or www.mcgrathinsurance.com.
*This article is written for informational purposes only and should not be construed as providing legal advice.