In the last post we discussed the failure of many households to purchase disability insurance – an insurance that is just as important in many ways as life insurance. Disability income insurance will financially protect a household should the policyholder become sick or injured and not be able to earn their salary.

Let us first consider the average American household with children. In many cases – as is the way of the world today – this household is reliant upon two incomes to keep up with expenses. In fact, very few households have extra money at the end of the month to put into savings plans or use towards discretionary purchases. This means that should the household lose one income due to a disability they are vulnerable to a host of financial disasters.

Of course, most of us have vacation time and sick time that we are able to call upon from our employment. But what if the disability is such that we are not able to return to work for many, many months – or not at all? Where does this leave our household in terms of mortgage payments, utilities, debt, and the day to day expenditures associated with running a modern household?

This is the situation that many young families with children find themselves in when there is no disability insurance. They may find themselves facing foreclosure, bankruptcy, and severe financial stress on top of an already physically and emotionally stressful time.

With disability insurance in place, however, we are able to protect our families from financial disaster. Should we become disabled, our disability insurance will begin paying out so we are able to meet our financial obligations head on and make other arrangements concerning long term plans. This is absolutely priceless protection for those who have children as they do not have to face moving homes, changing schools, and the other repercussions of losing an income during an already difficult time.

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