May is Disability Insurance Awareness Month Do you have disability insurance? If not, maybe it's time you did.
May is the month that organizations, agents, and insurers get together to spread the word about the importance of income protection and the gaps in insurance coverage that leave many Americans without assistance when they become ill or injured and unable to work.
Disability insurance is key to filling these gaps in coverage. Many people just cannot afford the costs associated with an unexpected injury or illness and, as a result, find themselves in debt.
Many working Americans are unaware that disability insurance exists and, if they do, are unclear on exactly what it is, what it covers, and how to get it. So, let’s shed some light on disability insurance.
Disability Insurance Overview
Disability insurance is an insurance product wherein you and/or your employer pay a premium to the insurance company, and the insurance company, in turn, pays a portion of your monthly income should you be unable to work due to a covered illness or injury.
There are two types of disability insurance, short-term disability insurance (STD) and long-term disability insurance (LTD). The main differences between STD and LTD are how long you have to wait for benefits to start after you become ill or are injured (waiting/elimination period), how long you can receive benefits, amount of coverage available, and how you get it. Here is a helpful comparison:
Why You Need Disability Insurance
If you are like many Americans, you may live paycheck to paycheck and not have enough money saved to cover a loss of income of 30 days or more. Here are some staggering statistics:
- According to Fortunly,
- Nearly 70% of Americans have less than $1,000 stashed away in their bank accounts, and only 5% of Americans have savings accounts that range between $10,000 and $20,000.
- According to SAM,
- The average disability claim lasts almost 13 months, and mortgage foreclosures due to disability occur 16 times as often as they do for death.
- Research indicates that one-third of employed Americans will become disabled for at least 90 days at some point in their career.
Whether you are employed full-time, part-time, or are an independent contractor, there are disability insurance policies out there to help protect you and your family should you become unable to work due to an illness or injury. We would love to help you with your disability insurance needs. Get a quote today!