The month of May is National Disability Awareness Month, recognizing the insurance policy that provides money to you in the event of a sudden illness or injury. Although no one expects to be sidelined from work with a disability, there is a 30% chance that you could experience an accident that causes you to miss crucial work time. As the saying goes, time is money - and when you lose time away from work, you could be losing out on a lot of money.The trouble surrounding disabilities is simple, people are unaware of how often disabilities occur. Below are some eye-opening facts regarding disabilities in America and how at risk you could be.
Did You Know?
- 68% of Americans in the labor force live paycheck to paycheck - this is not enough savings to cushion the financial impact a disability may cause to a family
- 46% of foreclosures on mortgages are due to a disability occurring
- 375,000 of Americans become fully disabled each year
- 50% - The chance someone who is 35 years old has of getting a disability for 90 days or more before they turn 65
- 3 years - The average long-term disability absence from work
If you experience a disability in your lifetime, your family and along with all that you own could be at risk. Without disability insurance, who will pay the bills, purchase groceries or fund your children's education?
Disability Insurance is typically split up into two separate groups; short term and long term. Short term disability insurance protects an individual when they become temporarily disabled. On average, a person with short term disability insurance can expect to receive 50% - 60% of their base salary prior to becoming disabled. These policies can last up to 6 months in length with a ceiling that limits the amount of money and benefits you are able to receive per month. Long term disability insurance covers an individual for an extended period of time. The policy will usually state up to how many years you are able to receive the portion of your salary / monthly benefits, unless you return to work in a shorter amount of time.
Many companies will offer employees a group disability insurance policy through the specific insurance agency that they partner with. This is a very smart approach, as it can lower the rates of these policies by a lot of money. An individual is able to purchase disability insurance separate from their company, but it will be much more expensive.
Make sure you acquire disability insurance before it's too late!