Are You Playing the Odds with Your Future?

Head of Disability Marketing, Individual Markets
Guardian Life Insurance Company of America^®

Editor’s Note: Your chances of being struck by lightning are pretty slim – 1 in 700,000. But the majority of Americans will be out of work (for at least a temporary period of time) due to symptoms or conditions as common as experiencing back pain or having a baby to more involved health challenges such as treatment for cancer, heart disease, or depression.

Disability insurance that you secure on your own and/or through your employer provides you with an income when you cannot work.

Your income makes the life you enjoy possible

Planning for your future is a critical step to help protect you and your family from life’s “what if” moments. Though most of us understand the importance of protecting valuable assets like our homes and cars, many overlook the importance of protecting the source that funds it all – your income. After all, income is the foundation for any strong financial plan and without income you would not be able to sustain the lifestyle you live and enjoy.

While we can’t predict the unexpected, we can help prepare for it. Disability insurance replaces a portion of your income if you become too sick or injured to work. By recognizing the important role that income plays in your life and the importance of income protection through disability insurance, you can better prepare for the unexpected and help protect your family. That’s one less “what if” to worry about.

Don’t get distracted by low odds events

It can be easy to get hung up on unlikely events that could have a major impact on your life. We may all have some sort of irrational fear of a random event. For example, whenever you go for a swim at the beach, you may think to yourself, “What if I get attacked by a shark?” Or when you have to run out to your car during a severe thunderstorm you may consider, “What if I get struck by lightning?”

But events such as a shark attack or being struck by lightning are very rare, with only 1 in 3,748,0672 and 1 in 700,000, respectively.^1,2These are just two types of events that individuals consider often and believe could happen to them during their lifetime. But the reality is that the odds of these events occurring is extremely low, so it’s important to consider the types of events that more likely can happen in life.

Focus on high odds events to better protect yourself

Because so many people focus on events with such low odds, events that have incredibly high odds – such as experiencing a disability during your working years – are often overlooked. The reality is that one in four adults will experience a disability at some point during their career.³ And, with the average long-term disability lasting 2.6 years⁴, the effect on income could be detrimental to your financial wellness. That’s why having a solid financial plan in place that includes income protection is key.

Disabilities can happen to anyone at any time and the cause is often different than what you may suspect. Did you know that almost 90 percent of long-term disabilities are caused by illnesses such as cancer, heart disease and arthritis – not injury?⁵ With more than 1.6 million people diagnosed with cancer⁶, more than 30 million diagnosed with heart disease⁷ and more than 58 million diagnosed with arthritis in the U.S each year⁸, the need for disability insurance is paramount.

Take the next step to help protect your future

Finding the right income protection option for you and your family can give you confidence, knowing that if disability does strike you can continue living the lifestyle you have worked so hard to build. Many employers offer group disability insurance by their staff. However, most do not realize that this type of coverage may not be enough.

In many cases, group long-term disability only covers about 60 percent of your income if you become disabled, so additional coverage may be necessary for you to continue meeting financial obligations. Consider the fact that 66.5 percent of all bankruptcies are tied to medical issues — either because of high costs for care or time out of work.⁹ By combining a group policy with additional individual protection, you can help mitigate the risk of losing your income if you become too sick or injured to work. That allows you to focus on your recovery, not your finances.

The best policy is the one that fits you

When considering income protection, find an experienced provider to help you choose benefits that will work best for you and your family. A financial professional can help you identify your most important savings goals, determine if your existing coverage is enough, and show you the lifetime value of your earning power. He or she will present a range of options to personalize your protection. Speak with a financial professional about your goals and create a strong foundation for your financial well-being to better plan, prepare and protect your future.

^{1. https://www.floridamuseum.ufl.edu/shark-attacks/odds/compare-risk/death/}

^{2. https://news.nationalgeographic.com/news/2004/06/flash-facts-about-lightning/}

^{3. U.S. Social Security Administration Fact Sheet, January 2021}

^{4. Council for Disability Awareness, The Average Duration of Long-Term Disability is 31.2 Months (Jan. 2016), https://blog.disabilitycanhappen.org/the-average-duration-of-long-term-disability-is-31-2-months}

^{5. Integrated Benefits Institute, 2018 Health and Productivity Benchmarking, Long-Term Disability}

^{6.https://www.cdc.gov/chronicdisease/resources/publications/factsheets/cancer.htm#:~:text=Each%20year%20in%20the%20United,second%20leading%20cause%20of%20death}

^{7. https://www.healthline.com/health/heart-disease/statistics#Who-is-at-risk?}

^{8. https://www.cdc.gov/arthritis/data_statistics/arthritis-related-stats.htm#:~:text=National%20Prevalence,gout%2C%20lupus%2C%20or%20fibromyalgia.&text=Learn%20more%20about%20national%20arthritis%20statistics}

^{9. 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.}

^{2022-135855 (Exp. 04/24)}

About Alexandra Ginieres

Alexandra Ginieres has written 9 posts in this blog.

Alexandra Ginieres is the Chief Marketing Officer at MGIS, an industry leader in specialized insurance programs for doctors. She has worked in financial services for over 25 years, with 12 years in the insurance industry. Her team builds go-to-market strategies, campaigns, and marketing resources designed to help group practices find the right income protection solutions for their doctors and staff. Alexandra is also the Chairperson of the Marketing Committee at the Council for Disability Income Awareness.