What kind of situation would you be in if you suddenly couldn’t work? How would you pay your bills? Mortgage? Car payment? Support your family?
Polk said that most Americans wouldn’t even make it a month before having financial difficulties, and one in four Americans would have problems immediately.
According to a report by the Life and Health Insurance Foundation for Education entitled, “The Real Risk of Disability in the United States,” You actually have a three in 10 chance of suffering a disability that keeps you out of work for 90 days or longer at some point during your working career. And it’s not accidents that are the primary culprit. According to the Council for Disability Awareness, 90 percent of disabilities are caused by illnesses not accidents.
Many workers incorrectly assume that either the government or their employer provide disability insurance. California offers State Disability Insurance for most workers, but self-employed workers are not covered. Benefits are paid after seven days of disability, but only at 55%, and benefits end after one year.
The federal government provides a form of disability insurance through Social Security, but most would have to wait a year and a day to establish their disabled status and then expect some difficulty in becoming classified as disabled. Typically, it requires that you demonstrate that your medical condition prevents you from preforming any work at all, not just the job that you had held. A 25-year old worker with an income of $50,000 who becomes too injured to be able to work again would lose $3.8 million dollars within their lifetime. In 2013, only 33% of applicants were approved for Social Security Disability.
How much money would you need to get by without a paycheck? You’ll need to take into account not just bills, but most likely debt, living costs, and dependents. Not to mention, you will most likely be facing medical bills and expenses as a result of the injury.
An individual disability policy provides the most protection for an individual or family. You can even protect your own occupation and can include inflation protection in case your disability is long-term. Premiums vary, depending on the amount insured, the benefit period, and the waiting period or deductible. Benefits can be tailor-made to fit your situation and your budget.
Disability insurance provides peace of mind, so that you know that you would be covered if you suddenly can’t work because of an illness or injury.
Call San Luis Obispo disability insurance expert Susan Polkfor a free disability analysis at (805) 544-6454.
Susan Polk Insurance
1443 Marsh St
San Luis Obispo, CA 93401