You have spent a significant amount of time and money to get where you are in life. Why would you not want to fully protect it? A disability could potentially put an end to your ability to earn an income.
All people have home, auto, life and health insurance, but many do not realize that it is necessary to couple them with a strong disability policy. A long-term disability could eliminate your ability to pay for certain financial obligations, such as your mortgage, medical bills and car payments.
The odds of becoming disabled are much higher than you may think. The 1994 Statistical Abstract of the United States indicated that 1 in 10 people will suffer a disability. When comparing that to the odds of being injured in a car accident (1 in 160) or death (1 in 117), the need for disability insurance is evident. In addition, a 2000 New York Times article reported that 1 in 7 people between the ages of 35 and 60 will become disabled for 5 years or more.
Despite the clear need for disability insurance, a 2000 survey by The Consumer Federation of America shows that 82 percent of people do not have long-term disability insurance or feel that their coverage is insufficient.
Although there are a few alternatives to disability insurance, few typically take care of long-term financial obligations. Social Security benefits only protect you if you are unable to work in any occupation (if you can answer telephones, you are not considered disabled). Workers compensation will only protect on-the-job injuries or illnesses.
It is important to guard your assets and to protect your income. Do not put yourself in a position where you will need to rely on family or friends in the event of a disability.