Facing the Facts
Consider all the things that depend on your income and you take for granted. You may not realize it, but your home, car, food, possessions, health insurance, retirement and your lifestyle all depend on your ability to work and earn a paycheck on a steady basis and for many years. The following are popular myths about disability and financial survival, along with the facts you need to know.
Ask yourself. “How will pay my bills if I become sick or hurt and unable to work”?
Myth 1: My chances of becoming disabled are small.
Fact: During your working years you have a greater chance of becoming disabled than dying by the age of 65.
Myth 2: Social Security will pay if I ever become disabled.
Fact: 70% of all disability applicants are rejected by the Social Security Administration. In fact, according to the 2003 Social Security Handbook, 5 full calendar months must pass before any disability benefits begin from the government. To qualify, the disability must be one that “can be expected to result in death, or which has lasted or can expect to last for a continuous period of not less than 12 months,” and the disability must prevent the individual from being able to perform any means of gainful employment.
Myth 3: I have enough savings to get by.
Fact: One year of disability can wipe out 10 years of savings, assuming that is that you have that much socked away!
Myth 4: I can sell my assets.
Fact: What would you sell? Assets sold under forced conditions are often sold way below market value for example: garage sales. No one wants to sell prized possessions that were worked hard for all your life.
Myth 5: I can borrow money.
Fact: Really? Who will lend you money without an income? Even family and friends can only help so much.
The fact is Disability Income Insurance is the foundation of a solid financial plan. For pennies-on-the-dollar a disability plan can transfer the risk to an insurance company where it belongs.
Peace of mind is knowing protection is there when you need it.