The Hidden Value of Social Security Disability Insurance: Why It’s Important During Benefits Enrollment
Insurance is one area where your perceptions may have changed in light of recent events. It may not be one of your favorite topics, but you’ve likely given your insurance coverage quite a bit of thought during the pandemic.
For consumers and industry professionals alike, the pandemic has taught us some valuable lessons about insurance — particularly life, health, and disability insurance.
Life insurance is about preparing your loved ones for the future
If the pandemic and the over 400,000 lives it’s taken has taught us anything, it’s that life is short and can end unexpectedly. The fear of death has risen to the surface for many people, along with the increased awareness of the financial risks associated with our mortality.
- How will my survivors pay the mortgage payment each month?
- Will there be money to put the kids through college?
- Will I be saddling my survivors with the debt I’ve accumulated?
You may have asked yourself some of these questions, or others related to death and financial matters.
But the most important question you probably have asked yourself is, “If I die from COVID, do I have enough life insurance?” We’ve learned that it’s not the cost that’s important when it comes to life insurance; it’s the safety it provides our family when we die. And that’s a very important lesson.
Having health insurance isn’t enough — you need to fill the gaps
According to Healthcare Finance News, the median charge of inpatient care for COVID-19 patients ranged from $45,683 for people aged 51-60, to $34,662 for those in the 23-30 age bracket.
If you don’t currently have health insurance, these numbers may be frightening. If you do have health insurance, you’re fortunate. Either way, the importance of having reliable health insurance has been driven home in the age of COVID-19.
Thankfully, many people who have been hospitalized for COVID-19 have lived to tell about it. But each of them still has to find a way to pay for their hospital care, not to mention any outpatient follow-up treatment that they may need. Every patient learned or re-learned the importance of health insurance and how it can prevent large medical bills from becoming a financial burden for years.
But even with health insurance, gaps in coverage may leave you ill-equipped to ward off these expenses. The pandemic has taught us that a serious illness, like cancer, stroke, or heart attack, can occur at any time. If you have a high health deductible that you can’t afford, concerns about your family health history, or a lack of emergency savings, supplemental coverage like critical illness insurance can serve as your last line of defense against devastating medical bills.
Disability insurance protects your greatest asset, the income you earn
Along with the threats of dying or having enormous hospital bills resulting from the pandemic, another fear looms large. It’s the possibility of not being able to work and earn a paycheck due to COVID-19, both now and in the future.
The majority of COVID patients spend between one and five days in the hospital. This doesn’t take into account the days they were ill and unable to work before they were hospitalized or the days after when they were convalescing at home. Short-term disability may be able to help for those whose diagnosis requires medical quarantine.
But even bigger risks lie down the road. According to the Mayo Clinic, long-term effects of the virus may include everything from strokes and seizures to blood clots and blood vessel problems. With many effects still unknown, long-term disability can help those who recover prepare for an uncertain future.
Never before have in modern times have so many fallen ill and had their income disrupted. Those without disability insurance not only suffer physically, but also face a greater risk of suffering financially. Having disability insurance is as important as having any other type of insurance.
Final thoughts
Adversity is one of life’s greatest teachers. So naturally, the pandemic has taught us a lot about ourselves. Among the most important is the need to be adequately insured against a life-threatening health condition can strike without warning. That’s a lesson that can favorably impact the rest of our lives if we’ll pay attention to it.
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