Wise Spending on Disability Insurance Can Help Family Finances
Values in financial assets are always a subject for discussion and in many instances, become a bragging competition. However, perhaps the material benefits, such as houses, vehicles and the holidays, are not that significant, when compared to the ability to earn money!
In these days of almost runaway price increases, previously perceived wealthy retirement prospects, have changed for many people. The pot filled with gold at the end of the working rainbow; has become their ability to keep earning money to fill the pot.
Should the family earner become disabled for any extended period of time, the consequences for a family could be dire! Figures released in a recent report, show that although many people have life insurance; they are over three times more likely to require disability insurance for at least a year, before reaching 65 years of age.
This factor relates to all workers, not only those approaching the age of retirement. It is a highly significant aspect of working life, for Americans who rely on living paycheck to paycheck, without the support of any savings. This is a common vulnerability and emphasizes the need for employers to offer disability insurance and incentive tax benefits from the government.
Long-term disability insurance, relates to payments made to you, following your being out of work, with a disability for three months or longer. Payments are generally 60% of your income which is relief for most households. However, it must be kept in mind that most disability insurance policies do not compensate for income from non-salaried sources, or work induced bonuses.
Another consideration is that disability insurance is not related to injuries sustained during your work; that is workers compensation. Reports show, most injuries and illnesses that are the cause of losing, working time, are not related to the working environment. This is a product that is better to have and not need it; than need it and not have it!