Countless people use insurance to protect a host of assets, from cars to homes to jewelry. But many people forget to insure their most important asset — the ability to work and earn a living.
As a recent Social Security fact sheet states, “Just over 3 in 10 of today’s 20 year-old will become disabled before reaching age 67.” And if an illness or injury renders you disabled early in your working life, the lost wages can be worth much more than a house or a sedan. Do the math: If you make $50,000, 30 years’ labor pays $1.5 million.
The good news is that if you don’t have insurance and you become disabled, you aren’t doomed. The Social Security Administration provides some form of disability benefits as a safety net that nearly 3 million people applied for in 2012. But it’s hardly enough to live comfortably. As of March 2013, the average disability payment was less than $1,130 per month. Furthermore, there is a complex eligibility process, and Social Security only pays benefits to people who cannot work because they have a medical condition that is expected to last at least one year or result in death. Federal law requires this very strict definition of disability. While some programs give money to people with partial disability or short-term disability, Social Security does not. Benefits apply to Americans with a medical condition that prevents them from working for at least 12 months.
For many families, the prospect of losing just a few months’ income or living on half the paycheck just isn’t an option. If this sounds like you, it may make sense to seek out some form of income insurance protection for yourself.
AC Financial can help you find the right income protection plan to fit your budget and your needs- to learn more visit www.acfg.co
