Disability Insurance

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Disability insurance has been marked as a necessary evil of others. "However, many can not even think it necessary. Just how bad.

So why do I own disability insurance?

'S very easy. Like life, I am the risk of transmission than me, someone or something else.

Comedian Jerry Seinfeld has a bit 'I have raised this issue. He questioned the purpose of skydiving center:

What is the meaning of the helmet? IfChute did not open, the helmet did.

According to MetLife, over 80% of American workers are not adequately covered or have no disability insurance. Thus, 80% had only a helmet or nothing at all!

Why so many people are uninsured or covered enough? Here are some common reactions:

- I do not need.

You're probably right. You do not need. But, is it? Failing, put your moneyRisks because it would absorb the financial shock. And remember, there is no such thing as self-insurance. Or are they insured or not. Get insurance allows the risk of their activities to enjoy without disabilities.

Studies show that a worker of 20 years can 3-in-10 were disabled before retirement age. Why is it safe?

- Can I count on Social Security.

On this government website: "Social Security pays only for the entireHandicapped. No benefits are due to partial disability or short-term. "

What does this mean?

Suppose you are a doctor and you are violating my right hand. Prohibition of damage from operations. Can not be social security disability, because the position of other professions, such as car sales.

"Disability" is based on disability social security. So if you can work in any capacity, you can not receive disabilityRevenue. They also use "other" factors to determine whether you can also receive coverage. Opportunities for people with disabilities may exceed the scope of coverage.

- Can I use my emergency fund.

The purpose of the reserve fund for emergencies. But when it comes to disabled people is, is a different way, this fund is suitable for things like repairs of vehicles, aircraft accidents, temporary unemployment, etc.

Remember to keep an emergency fund shouldSwim for a few months (or 3 months, 6 months, 12 months). The long-term disability may fail their savings in a shot at a reduction. An emergency fund will be based on current monthly expenses. But even with short-term disability, have the potential of their soaring costs.

- I group of long-term disability (LTD) at work.

A business group that includes long-term disability that typically 50% of their income. Can you and your family to live in midstreamIncome? And even if I could, really? Again, costs could increase because of their disability. These plans typically exclude bonuses and remuneration. The benefits are generally passive. This means that you can halve the additional salary.

And now? If you start to see the value of disability are now and should not be, or are not sufficiently covered, I suggest:

- To receive the training.

If you're still unsure, for moreInformation. At first I was a bit 'of my training, financial advisors. He taught me the importance of disability insurance. Has also taught me that my company was insufficient information. I recommend meeting with a financial planner or broker authorized to be better informed about the benefits of this policy.

- Buy the young.

I bought my first private disability insurance at age 24 I bought an early age my insurance would be no problem.Make sure you have a long wait. With the purchase of the policy at a younger age that makes the premium cheaper.

- Have a clear definition of disability.

If you sign up for your policy to ensure that its definition of disability is "own occupation". This means that you are insured if they are able to perform the essential functions of his job because of his disability. No matter if you are able to adapt to another job.

- Keep.

Wheneveras you continue paying premiums, it's politics. And 'laptop. A disadvantage Group Ltd. to the employer, that coverage ends when you leave or for political purposes. With private insurance, you are, whatever their employment situation is covered.

If disabled, the benefit is paid tax free to you. Why? Because you pay the premiums after tax dollars. So whatever your level of taxation. Uncle Sam can not take advantage of their disabilityRevenue.

Private disability insurance is very important to our financial planning. Protect ourselves and our facilities.

The question is: you have a helmet or a parachute when the risks of life? You can also use their assets to protect?