Your most important asset is not your home, your car, your jewelry or other possessions. It’s your ability to earn a living. Think about it: All of your plans for the future — from buying a home, to putting your kids through college, to building a retirement nest egg — are based on the assumption you’ll continue to earn a paycheck until you retire.
But what would happen if those paychecks stopped? That’s where disability insurance
comes in. It provides an income to you and your family if you are unable to work because of illness or injury.
Though disability is behind a significant number of home foreclosures and personal bankruptcies, insuring against it has not been a high priority for most workers because many assume they’re already covered through Social Security, state-mandated workers’ compensation or employer-provided group plans
. However, there are numerous holes in this safety net of coverage.
Only about 39 percent of the 2.1 million workers who applied for Social Security Disability Insurance benefits in 2005 were approved. And those who are approved get an average benefit of just $1,063 monthly — hardly enough to replace the average worker’s income.
Workers’ Compensation covers only work-related disabilities, but according to the National Safety Council, 73 percent of disabling accidents and illnesses aren’t work-related. And what about coverage through work? It’s a great employee benefit, but it’s not available to many workers. Only 36 percent of all full-time employees have access to long-term disability insurance through their employers.
Educate Your clients about importance of disability insurance