“We have recently witnessed the financial hardship that occurs to families when breadwinners lose their jobs due to layoffs. However, even in the best of economic times, people are still vulnerable to lose their income if they become too sick to work.
Greenwood Village, CO (PRWEB) May 1, 2010
While most people don’t think twice about insuring their cars and homes, they often leave one of their most important assets unprotected – their income. Working Americans rely heavily on their income to support their families and to fund their everyday living expenses.
“We have recently witnessed the financial hardship that occurs to families when breadwinners lose their jobs due to layoffs caused by the recession. However, even in the best of economic times, people are still vulnerable to lose their income if they become too sick or injured to work. Most people don’t consider this risk, or take action to protect their income,” says Jamie K. Fleischner, CLU, ChFC, President of Set for Life Insurance in Greenwood Village, CO. “Your paycheck is clearly one of your most valuable assets. It is crucial to insure your ability to earn an income.”
A recent Life and Heath Insurance Foundation for Education (LIFE) survey found that nearly 50 percent of working Americans would not be able to cover their living expenses for one month after a disability that kept them out of work. More than one in four surveyed said they would face financial problems immediately.
While no one likes to think about the unpleasant prospect of becoming disabled, the odds of suffering a long-term disability are much higher than most people acknowledge. According to the consulting firm Milliman, Inc., U.S. workers have a three in 10 chance of becoming disabled for 90 days or more between age 35 and 65. “With risks this high, and most people’s lack of large cash savings, disability insurance is something every working professional needs to be thinking about,” says Fleischner.
Disability insurance is one of the most overlooked and misunderstood of the major forms of insurance. With May being Disability Insurance Awareness Month, Fleischner provides the following tips to help people assess their coverage needs:
Determine much disability insurance you need.
Calculate how much income you would need on a monthly basis to cover your expenses. Iindividual disability benefits are non-taxable as long as the premiums are paid with after tax dollars.
Work with an experienced independent broker.
Disability insurance can be complicated and it is important to work with someone who specializes in this area of insurance. Agents are employed by an insurance company and will typically show you only their company’s plan. In contrast, an independent broker works for the client and is contracted with multiple companies. “It is important to work with an experienced independent broker who can provide objective advice, and can help you find the best available disability insurance plan to suit your budget and needs,” says Fleischner.
Pay attention to the definition of disability.
“The most important part of a disability policy is the definition of disability. This is the clause that determines whether or not your claim will be paid,” says Fleischner. The most comprehensive definition is “own occupation” which pays benefits if you cannot work in your profession. If you are a physician or a dentist, this would cover you in your medical or dental specialty and pay you benefits even if you could earn an income elsewhere.
Compare your options.
Don't settle on a one size fits all approach. Request a quote comparison of multiple policies and plans before you determine what is most suitable for you.
Look for Discounts.
Disability insurance can be expensive. Expect to pay between 1-3% of your income to protect about 75% of your take home pay. If you are a woman, the cost will be approximately 40% more due to higher risk. “Set for Life Insurance has discounts set up at multiple employers, hospitals and medical residency programs around the country that can help their clients save a significant amount (between 20 and 55%) on their premiums."
About Disability Insurance Awareness Month.
Held each May, DIAM is an industry-wide effort that is coordinated by the nonprofit LIFE Foundation. This year’s theme is “Protect Your Paycheck.” Set for Life Insurance is a strong supporter of DIAM and has been featured in multiple industry publications.
About Set for Life Insurance
Set for Life Insurance is a nationally recognized life and disability insurance brokerage specializing in helping medical residents, physicians, dentists, business owners and high income professionals with their life and disability insurance need. Based in Greenwood Village, CO, they are licensed in all 50 states. Jamie K. Fleischner, CLU, ChFC, President of Set for Life Insurance is locally and nationally recognized for her professional accomplishments. She is a graduate of Washington University in St. Louis and is Past-President of NAIFA-Denver. For more information about Set for Life, disability insurance, or to request a quote comparison, please visit http://www.setforlifeinsurance.com.