Take a minute and think about what would happen if you became too ill to work for a length of time? Or if you had an accident and couldn’t work for a week, a month or a year? How long could you and your family survive without your paycheck?
Disability insurance protects you in the event you become sick or injured and can’t work. Half of working Americans couldn’t make it a month before financial difficulties would set in, and almost one in four would have problems immediately, according to a Life Happens survey.¹
Many people think they’re covered well enough through other sources, such as workers compensation, an employer sponsored disability plan or through the government’s social security disability. This thinking can lead to financial disaster in the event of a serious illness or injury:
- Worker’s compensation typically pays about 65% of your pre-disability salary, but only when your disabling illness or injury is related to your work
- Employer sponsored disability plans are typically a flat amount or percentage of your income and you will lose this coverage if you change jobs
- 65% of applications for social security disability are initially denied… and you have to be disabled for two years before you can apply
¹The Disability Survey conducted by Kelton Research on behalf of Life Happens, April 2012