What would I do if I was too sick or hurt to go to work?

Many people have thought about what would happen if they died too soon. That’s a simple solution, buy life insurance. What most people have not thought of or think it couldn’t happen, or worse think they have it solved when in fact they do not is what would happen if i go too sick or injured to go to work for an extended period of time? This is not about getting the flu or having a minor surgery that you may be out of work for a week. This is about getting in an accident that leaves you in a hospital for 3-6 months and doing rehab 5 days a week for another 6-12 months. What about a musculoskelatal disease or cancer that you may or may not recover from and it permanently disables you? Of course this would probably never happen to you. However i bet it wont take you more than 10 seconds to think of someone who cant work anymore because of something like this.

Here are some stats from Mass Mutual (that they got from various sources) about Disability:

  1. Just over 1 in 4 of today’s 20 year olds will become disabled before they reach retirement age.
  2. Only a small fraction- 5%- of disabling accidents and illnesses are work related. The other 95% are not, meaning workers comp does not cover them.
  3. The average monthly benefit paid by Social Security Disability Insurance (SSDI) for the beginning of 2015 was $1,165.

These stats really prove a couple of things: 1. The young people who are really just getting kicked off in their careers need to be aware. Between you and 3 of your friends, 1 of you will get disabled. 2. Thinking workers comp or social security is going to take care of you is not necessarily the case.

Here is an example of what a disability could do to a family financially: A 35 year old worker with a spouse, kids, mortgage, bills (a normal person right?) and a $50,000 per year salary get a permanent disabled. That household stands to lose (at minimum and not taking into account raises) $1,500,000. Yes that is 1.5 Million with an M. How many households could withstand that type of loss of income. That does not even include cost of care for the individual, additional expenses of them not working and being home all day or being transported to different treatments/therapies, the possibility of needing a caretaker, etc. I’m 99% sure you get the point now about the impact of a disability, so how do you fix it?

There are multiple ways to fix it. You could save enough money in a savings account to provide income if you were disabled. The only problem is most people cant save that type of money or at best they would only be able to set aside up to maybe 6 months of income. Some people sign up for short term and long term disability insurance through their employer. This could help tremendously and I do not want to discount the impact that insurance could provide. However, if you are a highly compensated employee or executive or even the owner, this will be your downfall. Group disability will never cover enough for make up for the loss of income if you are a doctor, attorney, or highly compensated executive that has a specialty a standard disability insurance policy may not even cover you. An individual disability insurance policy can provide specialized coverage for an individual to either provide the income necessary (up to certain limits) or to supplement other benefits in place. Also if you are in a highly specialized field (a doctor for example) would need to have very specific own-occupation definitions in place to cover a disability and get paid.

Click this link to see a quick 4 minute video (produced by Ohio National Financial Services) about disability insurance and common myths as well as what coverage’s look like. For additional questions please do not hesitate to visit www.aubertinsurance.com or call us at 985-892-3101.

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