Disability Insurance

Mon, Jan 14, 2008

General

My father recently told me that if he could make one recommendation to me as a recent college grad, it would be for me to buy disability insurance. He has it and so does my mother, but I’m a little confused as to why he thinks I someone my age should get it. What does it cover? Is it affordable for someone with my type of income? What are the benefits? Is it necessary, and if so, are there any other options that compete with this type of insurance coverage?

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3 Responses to “Disability Insurance”

  1. jboynton Says:
    January 14th, 2008 at 11:46 am

    This is a great topic! I’m glad you have addressed this because disability insurance is something that absolutely every professional should have, regardless of age or salary. However, young professionals have a much higher chance of becoming disabled and this could lead to an extremely difficult financial situation. If you’re like most people, your earning power could come to a halt, but your bills and living expenses would continue. Disability Insurance protects your income by providing supplemental income in the event that you can not work.

    -A working 25 year old has a 38% chance of becoming disabled for 90 days or more before the age of 65.*

    Rather than spending down one’s savings or having to borrow money from others, disability insurance is the best and most affordable solution for protecting an extremely high risk to one’s “expected earnings”. Companies will not continue to pay the salary of an individual who is disabled for an extended period of time, and those benefits that most of us take for granted such as health and dental insurance will be absorbed by those of us who experience this type of tragedy. Imagine having to pay for every medically related expense while disabled, in addition to every other expense that is usually paid for by your monthly/bi-weekly pay checks. Most of us wouldn’t last longer than a couple of months before we were poor broke and had to turn to someone to lend us several thousands of dollars until we would be able to recover.

    Disability insurance can be extremely affordable for a young adult. The price is based on one’s age, job detail, place of residence, health status, and a few other factors. The younger you buy this coverage, the cheaper it will be, and most insurance companies will allow you to pay this same low price for the rest of your life.

    A reasonable disability policy could be the equivalent of that one extra cup of coffee you buy every week. Could you do without that one cup of coffee if it meant that an insurance company would pay for all of your regular expenses when you become disabled?

    (FACT: There is an injury caused by a motor vehicle accident every 14 seconds)*

    The older one gets, the more expensive this insurance becomes, to the point when it can become unaffordable for many people. Those of us on a career path to earn 75K or more by the time we are 35+ will inevitably consider this type of insurance as a necessity, especially for those of us who will have families to support and/or mortgages to pay.

    Consider this: One out of every two foreclosures is due to a person’s disability.*

    Now is the cheapest and most beneficial time for everyone to purchase disability insurance, something most of us will realize we should have purchased earlier in life.

    I’m happy to hear that your father has introduced this extremely important concept to you. Far too many young adults do not become aware of this insurance until they become disabled. For a free quote, just to check how cheap this insurance can be, visit:

    http://www.boyntonins.com/disability/

    Good Luck!

    1 National Association of Insurance Commissioners Individual Disability Table A, 1985.
    2 National Safety Council, Reports on Injuries in America, 2001.
    3 National Safety Council, Accident Facts, 2002.

    Reply

  2. sergik12 Says:
    January 14th, 2008 at 1:38 pm

    Very good advice, most firms offer disability insurance to their employees currently at a substantial discount. It is definitely a good idea to have it. I would do some research through James and also contact your current HR department for possible discounts.

    Reply

  3. Yvonne Nebel Says:
    May 5th, 2011 at 8:09 am

    Normally I don’t comment on your posts but I wanted to let you know I have placed a link to your page on my blog. I was thinking that maybe you could benefit from my visitors since we have somewhat similar pages.
    I would appreciate a link back ;) Regards, Yvonne Nebel

    Reply


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