One in Three People Will Become Disabled Before They Retire

Injury and Illness can cause devastating financial problems. Information in recent years indicates that over half of personal bankruptcies and housing foreclosures are brought on by the financial hardship of a disability. While many people assume that if they have health insurance they are covered and that everything will be okay, what they don't take into consideration is the fact that they may not be able to work if they are injured or disabled. This leaves them with no money for the house and car payments, medications, bills, insurance deductibles, and many times, simple day to day living expenses.

Statistics say that over 65 percent of Americans are living paycheck to paycheck; if a disability were to strike, they would fall behind within a matter of weeks. While car insurance, home insurance, and health insurance are standard fare in America, disability insurance is becoming increasing popular. This insurance can help soften the financial impact of a disability, help protect your assets, and help protect your family and lifestyle.

Disability insurance plans can help you keep up your house and car payments, pay for medications, and keep your life on track while you wait for the Social Security Administration to make a decision on your claim, which can be from a few months to a couple of years. While the Social Security administration is addressing the backlog on claims, it is still way behind and the wait can put undue stress on your life. Many have lost their houses, cars, filed bankruptcy, been unable to afford medications, and even died while waiting on the disability process.

Statistics also report that 3 people in 10 will become disabled before they retire. With those statistics, it makes sense to protect yourself with disability insurance.

While you may not think you have the extra budget to afford another insurance plan, in many instances you can keep your current health care budget through receiving savings on health insurance or choosing a higher deductible, allowing you the extra funds to purchase disability insurance and peace of mind.

The author of this article is Timothy Moore, who, in addition to being a former food stamp caseworker, medicaid caseworker and AFDC caseworker, is a former disability claims examiner for the social security administration. He answers questions about the federal disability system at Social Security Disability Secrets.

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By Timothy Moore