Who needs disability insurance?
The Council for Disability Awareness applauds the creation of a bipartisan Income Protection Caucus in Congress, a group that will focus attention on workplace disability insurance benefits.
The caucus aims to raise awareness about the risk of disability, promote personal financial responsibility, and encourage preparedness to help Americans take the necessary steps to protect their families’ financial futures. This group will collect and provide information on the risks of getting a disability from illness or injury during a working career as well as the significant financial affect this can have on individuals and their loved ones.
What is Income Protection?
Income protection is essentially disability insurance. It ensures you are protected if you lose one of your most valuable assets-the ability to earn income.
If you depend on your income to pay the bills or support your loved ones, disability coverage can protect you financially. Disability insurance protects your income by covering a certain percentage of your income during the time you’re unable to work.
What is Your Risk of Disability?
Your risk of getting a disability is higher that you probably think. Statistics show 64 percent of wage earners believe they have a two percent or less chance of getting a disability for three months or more during their working career.
However, the reality is much different. The truth is just over one in four of today’s 20 year-olds will come to have a disability before they retire.
Of the total population, there are 37 million Americans with disabilities (about 12 percent) and more than 50 percent of these individuals are in their working years ranging from 18-64 years of age.
Social Security Disability Benefits Are Often Not Enough
Even if you’re eligible to receive benefits through the government, the average monthly amount may not be enough to protect your income. On average, the Social Security disability insurance in 2015 is $1,165 a month.
Often, this amount falls short of what individuals with disabilities may need to pay monthly bills. Therefore, you may need additional coverage to protect yourself financially if you are unable to work for a period of time.
What You Can do to Protect Your Income
Private disability insurance can fill the gap in your disability insurance coverage. A group disability benefits plan through your employer or individual disability benefits plan on your own can help protect your financial security by helping you cover all monthly expenses.
First, ask your employer what type of disability insurance coverage is available to you. Then, to learn more about income protection and fully understand your disability benefits coverage talk to an insurance agent. He or she can carefully explain the definition of disability in your policy, list the specific terms and conditions, and guide your decision around which private disability benefits plan is right to protect your income.
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