Have you ever experienced an illness or injury that kept you from working? For most, it’s challenging to be in a position of financial struggle when life throws a curveball. Even more, the inability to provide financially for your spouse, children, and family members during a difficult season can feel defeating and demoralizing.
As a primary income producer, caring for your family is both a responsibility and a triumph. Trusting that you can provide adequately for your family brings comfort, and no one wants to see their family go in need because of their own poor financial decisions.
If you are one of the Americans that live paycheck to paycheck, you’re not alone. Only 48% of adults indicate they have enough savings to cover three months of living expenses in the event they’re not earning any income. However, one way to protect yourself and your family from a difficult financial situation is with long-term disability insurance.
What is disability insurance?
Generally, long-term disability insurance provides a portion of your income when an injury or illness occurs that keeps you from working. When most people think about what disability insurance covers, they tend to think primarily of freak accidents; however, this insurance covers much more than that.
Most disability claims are for things you may not realize are considered disabilities. For example, physical injuries, cancer, pregnancy, and heart attacks all fall under the definition of disability insurance. It’s important to note that these things could happen to anyone in any workplace.
Do I need disability insurance?
Short answer, yes. There are several reasons that disability insurance could be an income-saver for you and your family:
The risk for disability is significantly higher than you realize.
More than one in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the average retirement age. Generally speaking, the younger and healthier you are, the easier it is to be insured. Sometimes, an application may require your medical information before a policy offers coverage. Therefore, it is a wise decision to pursue disability insurance before you have an imposing health need.
Disability isn’t dependent on where you work.
When it comes to disability insurance, the definition of disability is broader than most contemplate. Because of this, disability insurance covers you for more than you tend to realize. The truth is, you’re at higher risk working with heavy machinery than in an office. However, while specific industries have more opportunities for potential disability, many disabilities are likely to occur regardless of your job.
Many workers don’t realize that the costs for an unexpected injury is often above what the average person can afford. Over 50% of American adults can’t pay an unexpected $400 bill. Disability insurance can provide a helpful buffer that protects your health and your income.
Two-income households suffer when one is out of work.
If your family typically operates as a two-income household, it can be a difficult transition to live on only one income in the event of a disability. If you are the primary breadwinner of your home, you don’t want to put your family in a position of difficulty because you didn’t take appropriate preventative measures with disability insurance. Without two incomes in your household, your family may be required to forfeit leisure activities, entertainment, vacations, and other amenities that they have not gone without before. Sacrificing your family’s comfort, safety, and lifestyle isn’t worth the risk of possibly going without an income because of a disability.
Long-term disability insurance preserves your family’s lifestyle
While there is short-term disability insurance, long-term disability insurance is the plan worth buying. Short-term insurance is what the name suggests - temporary plans that typically only cover you with protection for a year or less.
However, the long-term disability insurance benefit period typically ranges from two to five years or until age 65, depending on the coverage options selected. Coverage usually encompasses 50 to 70% of your income, which can protect you and your family from financial hardship.
The Council for Disability Awareness estimates that the average long-term disability absence from work lasts almost three years. Three years is a long time to have to meet financial obligations without a consistent source of income. You can adequately protect your health, your financial stability, and your family's well-being with a long-term disability policy that's tailored specifically to your needs.
At Pepper, Johnstone & Company, we have decades of experience in finding the right long-term disability insurance that’s right for you or your business. We take a consultative approach when working with you, so we know what long-term disability insurance to design and quote for you. Because of the way we spend time with each of our clients, we understand what your coverage needs are and can advise you toward a plan that makes the most sense for you. If you have questions about long-term disability insurance, we are here to help.
Pepper, Johnstone & Company is independently owned and locally operated to handle your insurance needs, be it commercial insurance, home insurance, or just general insurance. We focus on Athens and offer affordable and reliable insurance choices all across Alabama, Georgia, Mississippi, North Carolina, South Carolina, Louisiana, and Tennessee. We will help you find the right combination of tailored, personalized insurance coverage at just the right price to fit your needs. Contact us today to learn more about how we can help you.