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May is Disability Insurance Awareness Month

| May 30, 2019
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May is Disability Insurance Awareness Month. I thought this was an important topic to cover, one that is often overlooked especially by small business owners.

As Financial advisors, we focus a lot of our time on investing. Typically planning for a way to save and invest for college and ultimately retire are the most common concerns our clients face. Because these are some of the biggest “ticket items” in our lives, it makes sense we dedicate a good amount of time planning and creating a sound investment strategy to pursue these goals.

However, in your pursuit of investing for the future you shouldn’t forget about the “foundational” blocks to help build financial security no matter what life throws your way!

I was recently at one my regular networking groups when a friend of mine, Lucy*, a mom business owner, mentioned that she was diagnosed with Meniere’s disease. She complained of recurring episodes of vertigo, hearing loss and ringing in the ear. What struck me was that as Lucy described her current condition and the realization that she would have to sell her business as she couldn’t handle full time work anymore, she was even more upset because despite having worked with over 4 financial advisors in the past, not a single one discussed disability insurance to help protect her income in the event she got sick or injured.

So what is Disability Insurance and Why Should You Care?

I believe it is an essential part of your financial foundation. Just like home and auto insurance protect you in the event your property is destroyed, disability insurance can help protect your most valuable asset: your income stream.

Some statistics on disability in the U.S. per the LifeHappens website: 
One in 8 workers will become disabled for five years or more during their lifetime 
Over 37 Million Americans are classified as disabled, about 12% of the population 
Medical problems contributed to 62% of all personal bankruptcies 
Almost 90% of disabilities are caused by illness, not by accident

A policy’s true value depends on the definition of your eligibility to receive benefits. Some policies are broad in their definition while others provide very specific language for the protection of the insured. Accurate quotes depend on a variety of factors, which makes shopping for a disability policy quite a different experience than shopping for a term life insurance policy. While disability insurance is not for everyone – such as a couples who have a working spouse who can cover expenses on just one salary, if your family counts on your income for current living expenses or to help save and invest for future goals-I think it makes sense to at least review your coverage to make an educated decision.

Contact me to learn more!

Insurance products are offered through insurance companies with which Waddell & Reed has sales arrangements.
*Name has been changed

#Dentists #Lawyers #Smallbizowners #Professionals #Riskmanagement

05/19

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