The month of May has been designated as Disability Insurance Awareness Month making it a perfect time to ask you the question:
Are you covered?
In a survey conducted last year by the Council for Disability Awareness, two-thirds of Americans said their salary was their second most valuable asset, yet only three in ten had taken any steps to protect themselves.
Many executives have disability coverage as part of their benefits package, but aren’t aware of the details of such a plan. Many policies cap reimbursements at $10 – $15K per month. Worse still, depending on who pays for the coverage, this could be taxable income, and suddenly you could find yourself in a tight financial squeeze.
Because it’s Disability Insurance Awareness Month, we wanted to make sure individuals took the time to see what coverage they currently have, find out its limitations, and determine if they need a supplemental policy that can protect them and their assets.
Misfortune often happens with no warning. Illness, injury, accident, or surgery can lead to a long-term or permanent change in your ability to bring home your current salary, support your family, and maintain your standard of living. Isn’t it worth making sure you are protected against the potential for bad-case scenarios?
Facts and Common Misperceptions
(courtesy of the Council for Disability Awareness)
- Slightly more than 1 in 4 20-year-olds will become disabled before reaching retirement
- Injury (such as to one’s back) or illness (heart disease, cancer) cause the majority of disabilities as opposed to accidents
- The average length of a long-term disability claim is more than 30 months
- The majority of Americans do not have enough savings to cover 2 ½ years worth of bills
- More than 50% of all personal bankruptcies and mortgage foreclosures are a consequence of disability according to a study by Harvard University
How big of an impact would losing your income have? Just answer four questions below to learn your Earnable Income Quotient and see how much is at stake.
Please give us a call at Sapers & Wallack if you would like more information about disability insurance options that are available to you or just to ask questions about what is the best approach for protecting you and your family. As an independent advisor, our focus is spending the time to find the right solution for your needs.
Click the image below for an infographic on Disability Insurance Awareness Month.