Do You Have Paycheck Protection?
Life is a blessing, full of wonderful people, adventures, and journeys. Ever evolving, never predictable, life can and often does throw curve balls when we least expect it, which is why at Lundeen Abrams Advisors, we believe disability insurance is something every worker should evaluate.
Disability insurance is a type of insurance coverage that protects your income should you no longer be able to work, and specifically, long-term disability insurance will be the focus of our post today.
When evaluating if you need long-term disability insurance, it is critical to ask yourself the following question: If you were unable to work again, would you need paycheck protection?
If you are the primary income earner for the household and are not financially ready to retire now, the answer could be yes.
While many employers offer short-term disability insurance as part of your employment, most will require you to pay for your long-term disability policy. Sometimes there is a company-sponsored option, and other times, you will have to shop the insurance marketplace.
However, while it may be easy to glance over and pass on long-term disability coverage, you are likely to need it. Why? Because according to the Social Security Administration, nearly 1/4 of people entering the workforce at the age of 20 will become disabled during their career.
Further, only 33% of the workforce have long-term disability coverage, and most people are not ready financially to retire or take an extended work sabbatical today.
Therefore, being prepared for such an unexpected event that could cost you years of employment income can be smart. On average, the insurance coverage only costs between 1-4% of your annual compensation.
So, whether you are just starting your career as a single individual or the breadwinner for a family of 4, having disability coverage is equally important. After all, don't you want to have the assurance that your paycheck is protected so that you can maintain your lifestyle?
If you are interested in learning more about disability insurance, please reach out to us here at Lundeen Abrams Advisors. We are licensed in the state of Minnesota to sell various insurance solutions to fit your ever-evolving life needs. So, we will look forward to talking with you soon!