When it comes to insurance most people neglect to cover one of the most important items.
Their income.
The reality is that more than 1 in 4 of today’s 20 year olds will become disabled for at least a year before reaching retirement age, and that you are nearly twice as likely to become disabled than you are to die during your working years.
Also more home foreclosures are due to disability than death. Today the average long term disability claim lasts nearly three years, with many much longer.
Accidents are also generally not the culprit, rather chronic illnesses, musculoskeletal issues, and cancers are the main causes.
Workers Compensation only covers conditions directly work related, which account for less than 1% of disability claims. Don’t count on Social Security either, as SS disability only approves about 30% of all claims and is easily a 6-24 month process for filing and appeals, with the average benefit being less than $1,300 monthly.
Disability insurance is specifically designed to provide income protection and financial peace of mind in the event of unforeseen events. Both short term and long term plan options are generally available to individuals and groups as small as two employees.
Group coverage is typically very inexpensive and considered one of the best insurance values available today.
Mark Bradley
BMA Financial
Director of Insurance Services