The Science of Aging Well: How Your Beliefs Affect Your Health
Guardian Life Insurance Company of America®
Editor’s Note: When it comes to protecting yourself and your family, holistic protection is key. As we begin open enrollment season, start thinking about which benefits will be a good fit for your financial needs. When considering your options, understand the importance of having a diverse mix of financial products to create an all-inclusive strategy.
Start thinking holistically regarding your benefit strategy
Today, many employers offer a selection of key benefits to help protect you and your family. These may include health insurance, dental and vision insurance, or health savings and flexible spending accounts, just to name a few. But what about other forms of protection that can be just as essential —if not more — such as disability insurance (DI), life insurance, and retirement savings options? Benefits like these are usually offered by your employer, however, sometimes additional protection may be necessary to help keep your livelihood protected.
How the pandemic changed the way we think about income protection
Before the pandemic, many of us assumed that because we were young and healthy, we didn’t need additional protection and could solely rely on employer-sponsored benefits. Now we know that anything can happen to anyone at any time and being prepared is key. Making smart choices about your benefits now can help set you up for better protection in the future should something go wrong. While we can’t predict the unexpected, we can better prepare for it.
The outbreak of Covid-19 has especially shed light on our need for income protection. Regardless of whether you are just beginning your career or are a seasoned professional, disability insurance is a necessary tool to help protect your income. DI can help protect your ability to earn an income should you become too sick or injured to work. And believe it or not, disabilities are more common than you may think. In fact, 1 in 4 people will become disabled at some point during their working years.1
Disability insurance comes in many different forms, so it is important to find the right balance for your needs. Whether you are more cost sensitive and need basic protection, need a more robust and customized form of protection, or even if you’re a business owner, DI can help protect your income from those “what if” moments. While we still aren’t sure what turn this pandemic will take next, you can take steps now to help protect your lifestyle.
Steps you can take to help ensure you have a holistic strategy
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- Understand your financial needs
- Consider individual plans in addition to group plans
- Choose a provider that can help you customize a strategy that is best for you
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Understanding your financial needs is the first step in establishing a holistic strategy. The good news is that you can often supplement your employer-sponsored benefits with additional coverage through individual products – in many cases offered through a financial professional. Whether you are in the market for additional disability insurance, life insurance, or retirement options there are a variety of ways you can add supplemental protection to your financial plan.
Start considering individual plans in addition to your existing group plans. There are many benefits to adding various types of individual coverage to your portfolio. Unlike group insurance, individual coverage is usually portable, so if you were to change jobs you could take your coverage with you. Individual plans usually allow for customization as well, meaning that you can purchase add-ons or additional riders depending on what you need.
Income is the foundation for any sound financial plan
When choosing which benefits will help round out your financial plan, consider additional disability insurance first as a foundation that can help protect your income during your working years. After all, income is the foundation for any sound financial plan. Adding individual coverage along with your existing group coverage can help close the income gap.
In most cases, group long-term disability only covers about 60 percent of your income if you become disabled, so additional coverage can be necessary for you to continue meeting financial obligations. It’s true that 66.5 percent of all bankruptcies are tied to medical issues —either because of high costs for care or time out of work.2 By combining a group policy with additional individual protection, you can help mitigate the risk of losing your income if you become too ill or injured to work.
There are a variety of options to consider when thinking about individual disability coverage. If you are more cost sensitive, a term-based DI product may suit you well. If you already have term-based coverage, switching to a more robust product with advanced features may suit your needs. Many carriers offer optional riders at an additional cost, as well as coverage for a non-working spouse, or student loan protection. These additions can help you create customized coverage based on the needs of you and your family.
Round out income protection with life and retirement protection
Next, think about further protecting your loved ones if something were to happen to you with additional life insurance. You may even want to consider purchasing disability insurance and life insurance at the same time, through the same provider. Considering products like term or whole life insurance, can help you feel confident that if something were to happen to you, your policy’s death benefit could help your family continue to meet financial responsibilities like your mortgage, health insurance costs, or loans. By having an individual policy, you won’t have to worry about losing coverage if you change jobs.
Lastly, don’t forget about retirement savings. It is important to consider other products to help further protect the funds you’ve saved for your retirement, as there is a risk that you could potentially outlive those funds. As with disability income and life insurance, there are ways to help protect your income in retirement.
Begin preparing for a confident financial future today
When considering additional protection, find an experienced provider to help you choose benefits that will round out your financial strategy. Finding a provider that offers a variety of products such as disability insurance and life insurance can makes things easier, as you can purchase them in tandem. Speak with a financial professional about your goals to help create a holistic plan that will help protect your financial picture at every stage.
1U.S. Social Security Administration Fact Sheet, June 2020
2 CNBC.com, This is the real reason most Americans file for bankruptcy (Feb. 2019), https://www.cnbc.com/2019/02/11/this-is-the-real-reason-most-americans-file-for-bankruptcy.html
Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. This material contains the opinions of the author but not necessarily those of PAS or Guardian. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
Individual disability income products underwritten and issued by Berkshire Life Insurance Company of America (BLICOA), Pittsfield, MA or provided by Guardian. BLICOA is a wholly owned stock subsidiary of and administrator for the Guardian Life Insurance Company of America (Guardian), New York, NY. Product provisions and availability may vary by state. Optional riders are available for an additional premium.
GUARDIAN® and the Guardian Logo® are registered trademarks of The Guardian Life Insurance Company of America.
©Copyright 2021 The Guardian Life Insurance Company of America, New York, N.Y.
2021-128457 (Exp. 11/23)
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