Why Do I Need Disability Income Insurance?

People insure their car, home and even jewelry without hesitation but don't think about protecting one of their most valuable assets: their ability to earn an income.

One important way to protect yourself financially is to purchase disability income insurance. This is especially true for self-supporting singles without other people or sizable assets to rely upon.

What many don't realize is that a long-term injury or illness can occur at any time, preventing a person from working for months or years. It could also preclude you from being able to purchase life insurance.

A disability can have a devastating impact on your finances: expenses for a mortgage/rent, groceries and other basic necessities continue and may even rise if you cannot work.

What are the Odds?

It's obvious that the younger you are, the lower your chances are of dying. However, the chances of suffering a disability are significantly higher. According to the Harvard Law School and Harvard Medical School, nearly half of all Americans filing for bankruptcy do so because of medical expenses.* Do you know what your odds are of becoming disabled? Here are some figures that may surprise you.

Odds of Becoming Disabled Before Reaching Age 65**

Is There a Gap In Your Plan?

Disability income insurance can replace a good part of your paycheck if you are unable to work because of an accident or illness. Some employees offer short-term and possibly long-term group disability coverage. If your employer does not provide this type of coverage, the amount your employer provides is not sufficient or you are self-employed, you should consider purchasing an individual policy.

While there are many factors to think through with regard to your short- and long-term financial needs and goals, talking with a financial representative can help. A trusted representative can help you decide what kind of insurance is best for you and how much you may need in order to achieve financial security in the long run.

*"MarketWatch: Illness And Injury As Contributors To Bankruptcy", Harvard Law School and Harvard Medical School, February 2, 2005

**What are the Odds Calculator, www.nmfn.com | Learning Center | Calculators