Disability Insurance Articles
Why Disability Insurance Is Becoming More Important
2011-07-05
The current economic difficulties affect everyone. For working people, the importance of disability insurance is now a primary concern.
Disability coverage is not an abstract issue; it addresses a real and present hazard that most folks who have to work for a living must consider. Some workers, especially younger ones and those just starting out in the job market, do not think about the possibility of losing their incomes due to an injury or illness. The prevailing attitude is that something like that can't happen to me. It is not uncommon for someone in excellent health to believe that he or she will always enjoy the ability to pursue her career and earn enough to pay the bills. The statistics paint a different picture though.
It is a fact that as many as one third of all people beginning their working lives will become disabled at some point before they reach retirement age. Because the bulk of folks who benefit most from disability coverage depend on weekly or monthly wages and not year-end bonuses or other company provided benefits, the importance of disability insurance is immediate. If one of these people loses his job, it is likely that the bills will not be paid. Most of today are living on a tighter budget than ever before; every dollar counts. What's more, if someone loses his job because of chronic illness or the inability to perform the regular responsibilities of that position, the chances of finding another job, one with duties that he can perform, is close to zero.
Prudent workers have always protected themselves and their families by obtaining disability coverage. Although it does not compensate an injured or ill employee at 100% of her lost income, it does provide 60% of that amount under the terms of most policies. If your policy comes from your employer, that is probably the amount of coverage. Additional coverage of up to 80% of lost waged is easily purchased by the employee as supplementary insurance and is available at a rate almost anyone can afford. It is fair to say that the minimal outlay for supplementary disability coverage, or even the price of a private policy over the course of an entire career, is far less in terms of actual cost to the insured party than the loss of income for an extend period due to an illness or injury.
The importance of disability insurance in today's world cannot be overstated. It is the most affordable and direct way to protect one's income, and therefore one's financial security, from the ever-present threat of lost income due to circumstances beyond his control. It is the smart thing to do.