Preparing for risk always begins with recognizing that there is one, and then calculating the chances that it will actually happen.  But, as an article that I read recently pointed out, “the odds of a disability are themselves odd.” 

Some sources will tell you that you have an 80% chance of suffering a disabling illness or injury in your lifetime.  Others put the chances closer to 50%, and still others as low as 30%.  The number you hear – the number you choose to believe – is what will make the biggest difference in how you choose to handle this particular risk.

I like to think of it this way:  if the weatherman says there’s a 100% chance of rain, you’ll grab an umbrella before you leave the house.  If he says the chance is 50%, you may or may not.  But the important thing is this:  you know that it does rain, once in a while, almost everywhere, and so at some point in your life you buy an umbrella.  Or several umbrellas. 

Whether the chances that you will suffer a disabling injury are 80%, or 50%, or 30%, you need disability insurance protection.  Because every year, in this country alone, 31 million people just like you get rained on.   Maybe it’s a passing sprinkle, like a sprained ankle; inconvenient, but something you can recover from.  Maybe it’s a thunderstorm, like a mild stroke; sudden, disrupting, but again, only temporary.  And maybe it’s a downpour that not only never stops, but gets worse as time goes on, like multiple sclerosis. 

Don’t let the fact that you get different numbers from different sources be the reason that you become complacent.  Accidents happen.  Illnesses do come.  And without disability income protection, you’re left not only disabled, but disabled without any income.  About a third of all U.S. employers provide disability insurance.  But, since that coverage is employer paid, the benefits are taxed, so if you’re out on disability, you may be forced to make ends meet on 40% of your predisability earnings.

Who would you turn to if you couldn’t work?  Don’t think that Social Security will rescue you, despite the fact that you’ve been paying into it for years.  It can take more than a year for your claim to even be processed, and even longer if your claim is rejected the first time around.  Workers compensation?  Such claims are paid much more quickly, but the vast majority of disabilities are not work related, so workers comp is not an option. 

What are the chances that you’ll suffer a disabling illness or injury in your lifetime?   No one really seems to know that.  But here’s one thing you can be certain about.  You are your best advocate and your ultimate safety net.  You can make sure that your financial future is secure.

If you don’t have your own disability income protection policy, now is a good time to apply for one.  We’ll help you find the right combination of coverage and premium so that you’re prepared for whatever happens, come rain or come shine!

First, how much disability insurance do you have through your employer, and what other financial resources do you have? Other resources might include your savings, property or assets you could sell, borrowed money, or your spouse’s income. Now ask yourself if the combination of your employer-sponsored disability insurance and your other resources will be enough to pay your bills if you suddenly become disabled. Unless you’re independently wealthy, chances are good that your personal financial resources won’t carry you through a long-term disability. Also, the money you’ve saved is probably earmarked for goals other than disability for example your retirement savings or college savings. You might have to deplete these accounts to pay your bills.

Some employers do not offer long-term disability insurance. If your employer does, look closely at the policy. Review the monthly benefit and the length of the waiting and benefit periods. Is the monthly payment enough to pay your bills? The typical group policy covers 60 percent of your income, up to a maximum amount. Is income defined as your base salary, or does it include commissions and overtime? Most long- term disability income policy offered through your employer do not includes bonus payment.

How long is the waiting period in your employer’s disability policy? This is the length of time before any benefits are paid to you. Often, an employer’s disability policy coordinates with the company’s sick pay policy. You may have to use up all of your paid sick days before the disability policy begins to pay benefits. You need to plan on having cash available to cover any gaps in coverage.

If you decide to supplement your employer-sponsored policy with one of your own, make sure the two policies coordinate in ways that work for you. For example, if you need to increase the monthly benefit, be sure your own policy will pay concurrently with your employer-sponsored policy. 

Please call BeamaLife Specialists at (866) 972-3262 and they will help you to make the right decision.