Disability Insurance Articles
Three Major Risks Of Not Having Disability Insurance
2010-07-23
Most adults do not obtain disability insurance quotes because disability is regarded with ambivalence. The possibility is considered obtuse and the probability so remote that it is not a serious consideration. Preparation for the inestimable event of disability simply requires the purchase of a disability insurance policy that will cost approximately 2 percent to 3 percent of the earned income and will replace 60 percent of the gross income of the insured. There are major risks associated with not being indemnified against financial loss, including the eventuality of disability, depletion of resources, and eventually, financial devastation.
The general consensus is disability happens to others-inattentive people-and could never happen to careful people. A major risk of not having disability insurance is it can, and does, happen; in fact, one out of seven will be disabled for five or more years. Without disability insurance coverage, the disabled cannot maintain or supply the necessities of life or the expenses related to the disability. Actually, the ratio of being disabled before 65 is higher than the odds of dying. For example, persons 35 years of age have a 20-percent chance of disability; as age increases, the risk aggrandizes. The antecedents range from back injuries to substance abuse (3 percent) and the majority of disabilities do not result from being unmindful. In the past few seconds, someone simply driving home from work was disabled in a catastrophic accident, and in the last 10 minutes, someone suffered a crippling disability that rendered him or her unable to work for six months. Unequivocally, disability is a reality; it can happen to anyone.
Many feel they have adequate savings and do not realize the most valuable asset is the ability to earn an income. The average disability lasts more than 3 years; if the person had saved 10 percent of the earned income for five years, living expenses and medical expenses would virtually create insurmountable financial encumbrances that would effectually exhaust financial resources in a few months. The inherent risk of the lack of preparation for the unexpected loss of income is minimized with a disability insurance policy.
Financial depredation is another risk associated with being uninsured against disability. It often is inclusive of the necessity of bankruptcy, a last resort to prevent foreclosure and being rendered homeless. The NAIC reported in 2007, 50% of the disabled are unable to meet everyday living and medical expenses. Therefore, it is essential to obtain disability insurance quotes when considering financial indemnification. Taking the risk of being without disability insurance is not wise or responsible; financial security should not be left to chance.