ONLY THE WEALTHY AND FOOLS DO NOT OBTAIN LONG AND SHORT-TERM DISABILITY INSURANCE
Disclaimer: Good Day, Readers. WealthBuildingPowers blog is a financial literacy/competency blog and does not provide specific investment recommendations.
Empower Your Financial Well-being: Prioritize Long and Short-Term Disability Insurance Without Delay!
I retired for health reasons at the age of 57. It was unexpected, BUT I was thankfully prepared. I had private short- and long-term disability insurance. I also received monthly Social Security Disability payments. At age 57, I was neither that wealthy nor foolish!
Do you have disability insurance? If not, are you that wealthy or that foolish?
STAGGERING REALITY
- About 61 million adults in the United States are living with a disability.
- Approximately 25% of today’s 20-year-olds will become disabled before retirement age.
- At least 51 million working adults don’t have disability insurance coverage beyond Social Security disability.
- 65% of the private sector has no long-term disability insurance.
- Females have a slightly higher disability rate at 29% versus males at 26%.
Disability insurance is a safety net that makes all the difference in times of health crisis.
TYPES OF DISABILITY INSURANCE PLANS
- If you work and contribute to Social Security, you are covered for Social Security Disability Benefits. Depending on your earnings, the maximum payment is $3,822.00 per month, before taxes, in 2024.
- Many companies offer disability insurance policies. Either your employer or you pay the insurance premium. These policies typically cover 60% of your base income, up to $25,000.00 monthly.
- Finally, you can purchase your policy.
Understanding Disability Insurance: A Brief Overview
Short-Term Disability Insurance (STD)
Short-term disability insurance typically covers up to six months, during which an individual cannot work due to a temporary disability. {Example: A UPS delivery driver breaks her leg.} This type of insurance is commonly employer-sponsored, providing employees with a percentage of their salary while they cannot work. It acts as a bridge to cover immediate expenses during the initial stages of an illness or injury.
Long-Term Disability Insurance (LTD)
Long-term disability insurance offers coverage for an extended duration, often after the initial short-term disability period has elapsed. LTD policies generally provide benefits for several years or even until the policyholder reaches retirement age. This type of insurance is crucial for sustaining financial stability over the long haul when faced with a severe illness or injury that prevents one from returning to work for an extended period.
YOU NEED BOTH SHORT AND LONG-TERM DISABILITY COVERAGE
Combining short and long-term disability insurance offers comprehensive protection against unforeseen circumstances. As I mentioned, at age 57, my physicians advised me I could not continue working. I went out on Short-term disability, which helped with my routine life expenses. After six months, I applied for and, with a legal battle, won permanent long-term disability. Insurance companies LOVE collecting your monthly premiums and HATE paying them out. They may or may not refuse either your ST or LT claim. You have the right to dispute. In my case, when the company still refused to pay, I sought legal help and won my case. Always fight for what you believe is your right!
FINDING THE RIGHT DISABILITY INSURANCE
1. Assess Your Needs: Evaluate your current financial situation, considering your monthly expenses, outstanding debts, and any existing emergency savings. This assessment will help you determine the level of coverage you require to maintain your financial stability during a period of disability.
2. Explore Employer-Sponsored Options: Many employers offer disability insurance as part of their benefits package. Check with your employer to understand their coverage, including short- and long-term disability options. Employer-sponsored plans often offer competitive rates and convenient enrollment processes.
3. Research Individual Policies: If your employer does not offer disability insurance or insufficient coverage, explore individual disability insurance policies. Research reputable insurance providers and compare policy terms, coverage limits, and premium costs. Consider consulting with a financial advisor to ensure you make an informed decision based on your unique circumstances.
4. Understand Policy Terms and Conditions: Before finalizing any disability insurance policy, carefully read and understand the terms and conditions. Pay attention to waiting periods, benefit amounts, and exclusions or limitations. Being well-informed about your policy will help you make confident decisions and avoid surprises during a claim.
5. Seek Professional Guidance: Navigating the world of insurance is complex. If you find the process overwhelming, seek advice from insurance professionals or financial advisors.
Conclusion – Protect Your Future: Vital Reasons to Secure Long and Short-Term Disability Insurance Immediately!
None of us can predict what lies around the corner. We can proactively safeguard our future and protect our family’s financial well-being. Short- and long-term disability insurance is crucial.
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St Jude Hospital: The mission of St. Jude Children’s Research Hospital is to advance cures and means of prevention for pediatric catastrophic diseases through research and treatment. Consistent with the vision of our founder Danny Thomas, no child is denied treatment based on race, religion, or a family’s ability to pay.https://www.stjude.org/
Wounded Warrior Project: An American charity and veterans service organization that offers a variety of programs, services and events for wounded veterans of the military https://www.woundedwarriorproject.org
Folds of Honor: Providing life-changing scholarships to the spouses and children of America’s fallen or disabled military. And now, our mission expands to the families of America’s first responders. On our watch, those who protect our freedoms and our families will know they are not forgotten. https://foldsofhonor.org
Wilson’s No-Kill Animal Shelter: A N0-Kill shelter that is a top-rated non-profit. They compassionately care for all their animals. https://wcnkas.org
Tunnel To Towers: Since 9/11, we have been helping America’s heroes by providing mortgage-free homes to Gold Star and fallen first responder families with young children and by building specially adapted smart homes for catastrophically injured veterans and first responders. We are also committed to eradicating veteran homelessness and helping America to Never Forget September 11, 2001. https://dogood.t2t.org/give/320847/#!/donation/checkout
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ABOUT ME
I am a proud nerd (as my beautiful wife and daughter have told me) investment and finance blogger with an NC. State, Chemical Engineering, University Rutgers, MBA and Harvard University, Advanced Management education.
I left a corporate career because I desired to make a difference as a speaker and writer. I was blessed to be coached and mentored by strong women and men in my family and professional life. It is my time to serve and give back.
DISCLAIMER
I started my first business at ~13 years of age (a small but brilliantly created plant nursery). I am a successful investor in stocks, options, and real estate and am happy to share my finance and investment lessons. I am NOT a licensed financial advisor. Please do not construe my suggestions on this blog as recommendations for your situation. As an investor, you must establish your risk/loss tolerance. Investment in any asset involves risk, including complete loss.
Please seek your licensed CPA or fiduciary financial advisors for individual financial advice.
I write this weekly blog to make an impact by reaching an audience and demonstrating the need for financial literacy. I will help you get there.
