Debt has become something that most of us are all too complacent about; the average American, in fact, carries an average of $9,000 in credit card debt – something that is born from our inability to pay for those things we want in cash. With the economy struggling even more so today, more and more of us are finding ourselves in the position of carrying significant debt. It is, unfortunately, something that many of us just accept as a by-product of the economy. And we hope that by at least continuing to make minimum payments every month – until we are able to make some headway with a bulk amount of cash at some point – we can stay in the good graces of the credit bureaus and one day find financial independence.

This plan is all well and good on paper until there is a sudden and dramatic loss of income, such as what can happen when an earner find themselves out of a job due to illness or injury. In that kind of situation, without comprehensive disability income insurance in place, a consumer can very easily find themselves overwhelmed and eventually in default.

Disability insurance can put protective measures in place so the loss of a job doesn’t have to necessarily mean the end of the world financially. When an injury or illness causes someone to be identified as disabled and someone who cannot continue in their present line of work, the stream of income ceases. In a perfect world, the injured or ill person has a spouse that is able to make up for this loss of income; but often this is not the case and families wind up turning to savings and investments in order to fill their financial need.

With disability income insurance, however, policy payouts begin after the policy-stipulated waiting period and policyholders are able to meet their financial responsibilities – including debt payments – even with the loss of their paycheck.

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