Who Needs Disability Income Insurance?

"I'm all set." "I'll be fine." "I've got plenty of insurance already."

Have you thought or made these statements before? Do you have plans to protect your valuable income stream in the future? Most individuals understand the possibility of experiencing an accident or illness that could adversely affect their ability to earn income. However, many may be unprepared for a sudden, permanent disability that could decimate a lifetime of savings and stop income streams altogether.

Typically, permanent disability involves a series of hardships that results in an inability to perform certain work and daily activities for the foreseeable future. Some professions and occupations are at greater risk; therefore, consideration should be given to purchasing protection that has long-term income stream potential.

Typical Candidates for Protection from Disability:

• Jobs Requiring Specialized Abilities-Replacing income without disability income insurance is usually challenging; comparable pay and work conditions may be difficult to restore. Years of specialization, vocational training, experience, and education are invaluable, but these may become unusable resources if a disability occurs. Occupations that require physical labor are particularly vulnerable to physical disabilities. However, physical impairments are just one type of disability. Workers from all professions are likely to face extreme challenges if an emotional or mental disability affects their usual functioning.
• One- and Two-Income Families-Not everyone has parents, in-laws, siblings, or friends who might offer immediate emergency financial help or ongoing support. A one-income household is particularly vulnerable to the permanent or temporary loss of that income. Family situations in which each spouse covers between 30% to 70% of total financial needs may be also greatly impacted by the loss of an income.
• Small Businesses-Particularly vulnerable to the effects of disability are partnerships and corporations (which are business enterprises run by two or more owners). If disability curtails the involvement of one owner, the remaining owner must either "carry" the co-owner or close the business. In addition to earnings lost, the disabled business owner may miss certain planning opportunities, such as preparing for retirement.
• High Stress, Service, and Production-Oriented Occupations-Long hours, deadlines, quotas, and a fast-paced society place a tremendous burden on both mind and body. Our current emphasis on calorie control, physical exercise, meditation, relaxation, and conscientious dieting are popular stress inhibitors that may indeed extend our life expectancies. However, every successful, healthy worker faces the possibility of a disabling accident or illness.

Group and individual disability income insurance policies are available to cover most individual concerns and family or business situations. Careful planning will help steer you toward the proper coverage that addresses the demands on your current income and the needs of your family.

Copyright © 2011 Liberty Publishing, Inc. All Rights Reserved.
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