“It will never happen to me.” That’s what a lot of us think. In reality, however, illnesses and injuries can happen to anyone at any time. Nearly one in four of today’s 20-year-olds will become disabled before retiring.1
What constitutes a disability? Generally, when you become too sick or hurt to work, you are considered disabled. Many disabilities are short-lived—a pulled muscle, a sprained ankle or a serious bout with the flu. These types of illnesses and injuries typically don’t interfere with your ability to continue working and provide for your family.
Consequences of Illnesses and Injuries
But what if you suffer a heart attack? Or have a serious car accident and have to spend an extended period of time in a hospital (or worse yet, never fully recover)? What if you become gravely ill?
The financial implications can be disastrous. For instance, how would you make your house and car payments if you couldn’t work? Where would the money come from?
Other Sources of Income
Social Security provides a disability benefit, but the requirements for collecting benefits are very strict, and many people simply never qualify. Workers’ compensation only pays benefits if you become disabled due to a work-related injury or condition.
If your employer offers a group disability plan, that’s a good start. However, the coverage is often not enough. After taxes, most group plans only cover about 50percent of your income. A separate individual disability income (DI) insurance policy can help fill the gap.
When comparing individual DI insurance policies, keep the following in mind:
Remember, insuring your income could be the most important thing you ever do. Carefully research your options and work with a financial representative you know and trust.
10% premium discount1 for Ohio Psychological Association members.
1 Social Security Administration, Fact Sheet, Feb. 2013.
For more information, contact:
Jay Randall, Financial Advisor
Principal Financial Group
Disability insurance has certain limitations and exclusions. For costs and complete details of coverage, contact your financial representative.
Principal Life Insurance Company, Des Moines, IA 50392, www.prinicipal.com
DI2202-1 | 05/2013