In the last post we discussed how vulnerable a family could be if – with only one person bringing in an income and no disability insurance to speak of – the earner of the family becomes ill or injured and is unable to continue to work. Facing medical bills, household expenses, and a complete loss of income, a woman who has been, up until this point, staying home with her children may realize that she needs to return to work. But the issue then becomes finding reputable, affordable care for not only the children but also for the partner who is sick or injured and may need daily assistance; all services that can more than devour a paycheck.
Had this family had long term disability insurance in place, however, they would have not had to worry about finances on top of everything else that they were already facing. This mother could have continued to stay home and care for her children, pay their household expenses, and hire the appropriate care for her spouse.
But this is only one side of the coin. There are many couples that choose to also take out disability insurance policies for the partner that is at home with the children. Just because that they do not work in a conventional office does not mean that their role in the family is any less important; in fact, it is more so in most cases. What would the family do if their stay at home parent was suddenly unable to care for them as they had been doing?
In such a situation, the family may need to hire additional help – everything from child care to housecleaning services. With a comprehensive disability insurance plan in place the family is able to do what it needs to do financially so that they can focus on the more important matters at hand.
Popularity: 36% [?]
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We’ve all heard time and time again – or said, depending on our situation – that being a stay at home mother is one of the hardest jobs there is to do. The reason that it is said so often is because it is so true; a difficult thing to convince someone that has never done it and feels it would be a much better alternative to their corporate nine to five job. But aside from being a physically and emotionally challenging job, being a stay at home mother often leaves women in a financially vulnerable position. They are reliant upon their partner for a paycheck; which is all fine and good as long as that paycheck continues to come every week. But what happens if the household suddenly loses that money due to the earner becoming ill or injured? Now this family – faced with medical bills and no income – is more vulnerable than ever.
Disability insurance is a comprehensive insurance policy mean to protect policyholders that suddenly find themselves in the position of having lost their income due to a disability. Injury or illness – either physical or mental – can impact us for a very short period of time; short enough that we are able to take vacation or sick time for work without too many financial repercussions after which we return to work. But injury or illness can also impact us in the long term and make our return to work impossible. Without disability insurance in place, what becomes of our family?
You may think that the solution rests in mom going back to work. But then what becomes of the children and how does a family that is already struggling now pay for child care as well as the care – in whatever capacity – that is required by the person who is sick or injured?
In the next post we’ll discuss in greater detail how disability insurance can help a family in this situation.
Popularity: 16% [?]
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A Case Study: Karen
Karen M. was a vibrant thirty-five year old with a successful career as a dental hygienist, a husband, two children under the age of ten, and a wonderful home in a great part of town. She had a great life raising her family and finding personal satisfaction through her job. With both Karen’s and her husband’s salaries they were able to comfortably pay their mortgage and still had money left over for nice vacations and the extras that made life so much fun. Karen also took great pride in staying healthy – eating right and working out several times a week.
It made no sense to anyone who knew Karen – and absolutely less sense to Karen – that she would suddenly suffer a stroke at such a young age.
Suddenly, life was completely upside down for Karen and her family. Her days were spent recuperating – an endless cycle of physical rehabilitation and occupational therapy; recovering her speech and her ability to care for herself on her own. The doctors gave her a great prognosis for a full recovery but she had a long road ahead of her.
But Karen and her husband faced other issues besides Karen’s medical condition. Because she was out of work – and would be for a significant time to come – the loss of Karen’s paycheck was hitting the family hard. Karen and her husband had opted out of purchasing disability insurance and now they were scrambling to pay bills on one paycheck. As if recovery wasn’t enough to focus on, Karen and her husband were now worried about their mortgage, their utilities, and child care. Clearly the decision to forgo disability insurance was not a wise choice.
We buy insurance in the hopes that we will never need it. It is, in fact, meant only as protection for possibilities not eventualities. But sometimes those eventualities do happen and the insurance that we have purchased makes what are certainly trying times just a little bit easier.
Disability insurance is meant to protect in the case of injury or illness. We hope never to have to need it. But if we do become ill or injured and are unable to return to work, disability income insurance is meant to protect our finances so that we will not suffer financial ramifications along with everything else.
It is certainly easy to see from Karen’s story how crucial disability insurance can be to protecting our interests in the event of illness or injury. After all, how long would any of us survive financially with the loss of a paycheck? Disability income insurance can make sure we survive a traumatic period in our lives with our finances intact.
Popularity: 19% [?]
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It would surely surprise many people to know that one in seven people will become disabled before the age of sixty-five. This means that they will face an illness or injury that will prevent them from returning to their job and earning their current salary. Without one of our paychecks most of us would be up a creek in terms of paying our household bills including mortgage, utilities, and debt – not to mention food and fuel which are increasing in price every day.
There are limited options for those who have become disabled at such a young age. They may have to turn to their savings, investments, and perhaps even the equity in their home in order to make ends meet – and ultimately this only goes so far. Because social security is meant for those aged sixty-five and older it is very difficult to receive benefits as a result of a disability. In fact, over fifty percent of those that apply for benefits as a result of a disability are denied. But with disability insurance in place, those that are facing financial difficulties because of a disability are protected.
Disability insurance plans are an essential component of the protection put into place for families. Just as we buy life insurance to offer financial protection for our families in the event of our death, it is equally important that solid disability insurance be put into place to protect our families in the event that we are unable to return to work due to a disability.
With disability insurance, policyholders are protected from the financial turmoil that comes with losing a paycheck either temporarily or permanently. Rather than depleting savings and trying to qualify for social security benefits, those who find themselves facing a disability can turn to their disability insurance provision for the financial protection they deserve.
Popularity: 26% [?]
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There are none of us that can actually say that we have envisioned bankruptcy as a part of our financial future. While we may not necessarily have expectations of living in a grandiose style, we certainly don’t envision a life where we are in such poor financial shape that bankruptcy is our only alternative. But the reality is that millions of people find themselves in exactly this situation every year – forced there by circumstances that they simply did not anticipate and for which they were not prepared.
In fact, bankruptcy can often be the indirect result of a disability. Those who are facing illness or injury and are unable to return to their job are suddenly without a paycheck. With household bills mounting – in addition to the hefty medical bills that many face - those who are disabled suddenly find that they are facing another repercussion of their circumstances – and it’s financial.
A well chosen disability insurance plan, however, can protect consumers against the financial ramifications of a disability – protecting their assets and giving them a supplemental income during their disability.
Subsequently many consumers have discovered the importance of having solid disability insurance plans; just as important as comprehensive health insurance policies or life insurance policies. Disability insurance can be purchased based on the policyholder’s unique needs as well as the budget they have for payment of premiums. The challenge becomes purchasing enough disability insurance to cover a policyholder should they face an illness or injury and suddenly lose their paycheck within the confines of what they are able to afford in premiums. Working with a reputable insurance company will allow policyholders to find the disability insurance plans that work best for them in terms of provisions and affordability.
With a disability income insurance plan in place, however, a policyholder can have the peace of mind of knowing they – and their family – are well protected from disability related bankruptcy.
Popularity: 20% [?]
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Pregnancy is a time during which expectant mothers and their families wait for the arrival of their newest family member. We ready rooms, prepare ourselves for a short leave of absence standard with most company maternity leaves, and essentially go about our business. For most of us this is a time of immense joy and we hardly give any thought to the fact that something could go wrong during labor and delivery. Of course it happens; we know it happens. But we can’t quite imagine it happening to us.
There are, of course, instances when things do go wrong with labor and delivery and our recovery takes longer than we may have expected. This extra time in the hospital – or at home – recovering certainly allows our bodies to heal but it does nothing for our wallets that begin to experience the severe tightening that comes with being out of a paycheck. Additionally, there are some women that – in light of high-risk pregnancies – are under doctors’ orders to remain on bed rest for a large portion of their pregnancies. This is where disability insurance can help.
Disability insurance is put into effect by policyholders that want to protect themselves in the case of an illness or injury that prevents them from returning to their job. Most of us – especially in this particular economy – are hard pressed to make it without one of our paychecks. In fact, the thought of trying to make it past one pay cycle without a paycheck is essentially unthinkable to most of us.
With disability insurance plans in place, however, we are protected from financial disaster, as the premiums we pay towards the policy come back to us in terms of replacing our loss of pay. Disability insurance plans are offered in many different shapes and sizes; it is up to each individual policyholder to determine what makes the most sense for them with regards to benefits versus the affordability of premiums.
But for those who may find themselves taking more time off than they would have ever imagined either during or following a pregnancy, disability insurance can ease the financial burden that may result.
Popularity: 19% [?]
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Insurance policies share a common purpose in that they are designed to protect policyholders against the unexpected. Health insurance policies protect us in the face of illness or injury that requires medical attention, car insurance policies protect us in the event of an accident, and life insurance protects our families in the event of our death. Certainly the challenging part for any potential policyholder – of any insurance – is determining how much insurance they need; no one wants to be over insured and struggle to pay premiums, nor do they want to be under insured and left vulnerable in the case of something happening.
Disability insurance is similar to other insurance policies in that it is meant to protect policyholders against the unexpected; in the case of disability insurance the unexpected can be an illness or injury that prevents the policyholder from returning to their job and earning a salary. In such a case, the disability insurance policy would become activated and the policyholder would begin to receive their benefits to make up for their lost wages.
The price of a disability income insurance policy obviously differs from policyholder to policyholder depending on the benefit amount chosen, the length of the policy, and the time period that the policyholder is willing to wait between the time they are deemed disabled and the time that they begin to receive their benefits. Traditionally the longer the wait time the lower the premiums that the policyholder will pay for the disability insurance policy.
Choosing a benefit amount, however, is by far the most critical portion of applying for a disability insurance policy. In order to choose the most appropriate amount, a policyholder must take into account every last expense for which they are responsible including house and car payments, debt, utilities, food, fuel, and so forth. To this end it may be helpful for potential policyholders to put together a comprehensive spreadsheet where they track their expenses for a few months before applying for their disability insurance policy.
Popularity: 17% [?]
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For most of us, our homes are the biggest financial investment that we will ever make; an investment that we need to protect as best we can. Throughout our lifetime there are a myriad of things that can happen that can endanger our ability to pay our mortgage, and before we know it we could be in a position where we are facing a foreclosure. When we consider the fact that most of us would be in serious financial trouble if anyone in our household were to lose their salary, then it becomes clear very quickly just how important it is to make allowances for those circumstances that we may not be able to anticipate.
Disability income insurance is a protective feature chosen by many people who want to protect their earnings should they experience an illness or injury and not be able to return to their current job. A loss of salary could be financially devastating for a family, and so policyholders put disability insurance into place so that they are not financial vulnerable if their physical (or in some cases, mental) condition causes them to have to leave work either temporarily or permanently.
Clearly the benefits of disability income insurance are numerous and most policyholders understand that by enacting a disability insurance policy they are protecting their family’s ability to continue to live their life comfortably. But beyond the ability to pay utilities, buy food, and pay for the day to day expenses that come with living a life, disability insurance allows policyholders to protect their financial investments. This protection is extended to everything from savings accounts and 401k investments to college savings and IRA accounts – anything that we would have to quickly access and ultimately deplete if we found ourselves without a salary for an extended period of time. But beyond that, disability insurance protects our largest financial investment – our home – from vulnerability.
Popularity: 22% [?]
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There are certainly none of us who ever want to face an illness of any kind – that never want to have to spend an extended stay in the hospital or deal with the recuperation time that follows a major surgical procedure. But unfortunately life happens, and there is oftentimes where we face an unexpected illness; and getting healthy is something to which we must commit ourselves totally. While it would be nice for us to be able to leave our jobs for a period of time during which we undergo medical treatment and still earn our salary; that is simply not possible. Some of us may have extended paid vacation time under our belts that we can use towards this temporary leave of absence but beyond that we are left to our own devices.
This is where disability insurance comes into play. Disability insurance allows policyholders to leave their job either temporarily or permanently and still receive a “wage” of some kind – allowing them to focus on getting healthy without being worried about financial matters. There is nothing worse than having finances on your mind while you are trying to focus on your physical health. Disability income insurance will allow families to be protected in the face of illness.
For those facing a surgery and the aftermath of recuperation, a disability insurance plan will allow them the time necessary to care for themselves as much as possible. There are a variety of policies from which to choose; some long term disability insurance plans will even cover policyholders up until the age of traditional retirement. Subsequently, should the policyholder find that they are unable to return to work at all the disability insurance plan will pick up where a traditional salary left off.
No one expects to become ill; but illness does happen, expectations or not. It is important for everyone to have a disability insurance plan put in place to ensure that families are protected in the face of the unexpected.
Popularity: 17% [?]
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A part of living our lives responsibly is preparing for possible occurrences that could impact our family’s ability to live comfortably. Life insurance is one such way in which we protect against that which we cannot possibly anticipate; should something happen to us unexpectedly, our life insurance policy will ensure that our family is taken care of through the payout of the policy. Health insurance is also significant in this capacity; protecting us against any possible illness or injury that may arise. Further, disability insurance allows us to put things in perspective in regard to ensuring that important elements are put into place to keep our family protected.
Disability insurance plans help people plan for the unexpected in terms of illness or injury. Should a policyholder become ill or injured and not be able to return to work, a disability insurance policy will pick up where the paychecks left off; allowing families to continue to live comfortably regardless of whether or not they are able to earn their current salary.
There is much that we do in order to protect our children and our families; disability insurance is simply another component in this care. For those who have not as of yet purchased a disability insurance policy, the time is now. Consider the following when deciding whether or not you need a disability insurance policy:
* One in seven people will become disabled for five years or more by the age of 65.
* How many months would you comfortably survive without your current salary? With most of us living paycheck to paycheck, there are few among us who would be able to stay afloat without our current wages.
* How will you protect savings – retirement, personal, college – without a comprehensive disability insurance policy? Most people who become disabled and are unable to return to work wind up depleting these savings in an effort to stay afloat. What does this mean to your future or the future of your children?
Popularity: 23% [?]
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