Disability Insurance - Do I need it?

Your career is a direct result of hard work and aautomobile accident (1 in 160); or even of death (1 in
substantial investment of time and money. Doesn't it117), the advantage of disability insurance is clear. A
make sense to fully protect it? A disability could renderFebruary 2000 article in the New York Times reported
you helpless by taking away the one thing that youthat 1 in 7 people between the ages of 35 and 60 will
need to safeguard all of your assets: your income.become disabled for five years or more.
Home, auto, life, and health insurance are certainlyDespite these glaring statistics, many people still take a
valuable investments, but failure to couple them withsubstantial risk by ignoring the benefits offered by a
disability insurance will jeopardize your full financialdisability insurance policy. In 2000, a survey by The
security. For example, health insurance might cover theConsumer Federation of America and The American
potential fiscal pitfalls of the medical bills that resultCouncil of Life Insurers found that 82 percent of
from a disability, but the rest of your financialpeople do not have long-term disability insurance or
obligations are not going to come to a halt. Vehiclebelieve their coverage is inadequate.
payments, mortgages, insurance premiums, and evenThe alternatives to disability insurance all carry a
savings for the future are all important expenses thatdegree of risk or have some sort of drawback. Social
cannot be ignored just because you are disabled.Security benefits are difficult to qualify for and the
Unfortunately, the chances of becoming disabled mightdisability must prevent you from working in any
be greater than you think.occupation. Worker's compensation benefits are limited
According to the 1994 Statistical Abstract of theand only cover job-related sickness or injury. Other
United States, in the course of a year, odds are that 1options-relying on savings, family, and/or friends-are not
in 10 people between the ages of 25 and 64 will sufferguaranteed and have considerable downside.
a disability. When comparing that ratio to the odds ofGuard your assets-don't leave yourself vulnerable by
being victim of a house fire (1 in 122); injured in anneglecting to protect your income.