Protecting your paycheck with disability insurance

You insure your home, cars and other important possessions, but are you doing the same when it comes to your ability to earn a living? If you depend on your paycheck to cover everyday expenses — and nearly all of us do — you need disability insurance.

According to the Council for Disability Awareness, almost one-third of Americans entering the workforce today (3 in 10) will become disabled before they retire. Review these options for disability protection to make sure you’re properly prepared should a disability keep you out of work for an extended period of time.

Social Security Disability Benefits

Can your family live on $1,138 a month? That’s the average monthly benefit paid by Social Security Disability Insurance (SSDI) as of March 2011. Even if you qualify, there is typically a six-month waiting period before SSDI benefits begin.

Workers Compensation

If you’re injured or become ill as a result of your work, you may qualify for workers compensation benefits. Workers compensation covers only work-related disabilities, yet according to the National Safety Council, 73 percent of disabling accidents and illnesses aren’t work-related.

Employer-Sponsored Insurance

If your employer offers disability insurance make sure you fully understand the benefits and any limitations of the program. An individual disability insurance policy can be a supplement to your employer’s coverage. A personal disability insurance policy can also provide protection should you change jobs – something an employer-sponsored plan doesn’t offer.

Disability Income Insurance

If disability insurance is not provided by your employer, or if you need additional coverage, it can be purchased individually at affordable rates. Self-employed individuals can also benefit greatly by having disability insurance.

Don’t leave your greatest asset — your ability to earn a living — unprotected. Contact your Farm Bureau agent today.

Sources: Life and Health Insurance Foundation for Education, www.lifehappens.org, DIAM, visited April 8, 2011. Council for Disability Awareness, www.disabilitycanhappen.org, visited April 8, 2011. Long-term care and Disability Income insurance policies are underwritten by a variety of insurance companies that are not affiliated with our companies.

Tips brought to you by Farm Bureau Financial Services. For more information about products and services, call Randy R. Stein CLU, ChFC, LUTCF at (319) 472-5231 or stop by the office located at 1105 West 9th Street in Vinton..

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BL November 4, 2011, 2:59 pm It is ironic that wage earners consider their ability to earn a living to be their most valuable financial resource, more valuable than their savings, their homes, their possessions, their retirement savings. Still, 100 million American workers have no private disability insurance. (By comparison, only about 47 million are without health insurance.) Many that have private income protection insurance do not understand what their program covers and/or don\'t have enough. Our research (http://www.disabilitycanhappen.org/research/consumer/) demonstrates that wage earners dramatically underestimate their risk of disability, and overestimate their ability to cope financially in the event a disability happens. The bottom line is the risk is higher than people think, the impact of income loss from illness or accident is financially catastrophic, and while people can plan to protect their incomes, many do not take that step. All financial security for virtually all Americans comes from their paycheck, and the foundation of every financial plan must be to address the need for income protection.

Best wishes,

Barry Lundquist
President
Council for Disability Awareness
www.disabilitycamhappen.org

Business : Protecting your paycheck with disability insurance

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