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The Disability Insurance Coverage Choice

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More people are purchasing policies to protect their income

Whereas disability insurance was once an afterthought for many Americans, more and more people are choosing to invest in it. Why? There are a number of reasons for the trend, but people are recognizing that it is as important as, if not more important than, life insurance.

While life insurance can help take care of someone's family should he or she pass away, disability insurance will cover varying degrees of one's income should the person be unable to work for a period of time.

"While it is important to make sure you have life insurance, you should also make it a point to have disability insurance in place should you become disabled ... you have a much greater chance of ending up disabled than you do of meeting your untimely passing," explains the website MoneySmartGuides.com.

The statistics back up such statements: "... the reality is one third of all Americans between the ages [of] 35 and 65 will become disabled for more than 90 days, according to the American Council of Life Insurers," writes Stacey L. Bradford at the website SmartMoney.com. "One in seven workers will be disabled for more than five years."

"Not only will you have to cover the living expenses you had before your accident, but now there could be other costs involved: surgeries, making your home and car accessible depending upon your injury, etc. Where will the money come from for these expenses?" adds SmartMoney.com.

While not everyone is conscious of the statistics on and the dangers of disabilities, from the increased funding for special-needs education in public schools to the growing popularity of the Paralympics, these days we're all more knowledgeable about accidents, diseases and illnesses, and that is probably another reason for the rise in disability insurance coverage.

Another reason for the trend is the fact that Americans are working later and later in their lives, which simply means we have a greater chance over the course of our careers of experiencing a disability, and we want any time we need to take away from work to be covered by insurance.

According to a recent Gallup poll, the average American now expects to retire at age 67, up from age 63 a decade ago and age 60 in the mid-1990s.

"Gallup also finds a steady, although less steep, increase in the average age at which retirees actually retired, from age 57 in 1991 to age 60 today," the company reported.

Finally, another factor in the rising number of people choosing disability insurance has to do with the very fact that more and more people—and companies, on behalf of their employees—are choosing to purchase individual or group plans. Moreover, the Internet has made it easier for companies to advertise their services. Both of these trends have significantly driven down the costs of disability insurance.

And that's a good thing, according to the website GetRichSlowly.com.

"Personal finance isn't just about growing your finances—it's also about protecting what you have," the website states. "Most experts advise insuring your home, your car, your health and your life. What many of us never get around to doing is insuring our earning power."

Stop by today to let one of our advisors guide you through this important process and help determine how much disability insurance is right for you.

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