May is Disability Insurance Awareness Month (DIAM), a time to highlight the importance of disability insurance and its role in protecting individuals and their families from the financial consequences of an unexpected disability.
Disability insurance is a type of insurance that provides income replacement if you become unable to work due to an injury or illness. It can help you pay for daily living expenses, medical bills, and other financial obligations when you're unable to earn an income.
However, many people are unaware of the risks of disability and the need for disability insurance. DIAM is an opportunity to raise awareness and educate the public on the importance of this coverage.
According to the Social Security Administration, one in four 20-year-olds will become disabled before reaching retirement age. The risk of disability increases as you age, with older Americans more likely to experience a disabling condition. Despite these statistics, many people do not have disability insurance or are underinsured.
There are two main types of disability insurance: short-term disability (STD) and long-term disability (LTD). STD typically provides coverage for a few months up to a year, while LTD can provide benefits for a longer period of time, sometimes until retirement age. It's important to understand the differences between these two types of coverage and to choose the policy that's right for your needs.
There are also two main ways to obtain disability insurance: through your employer or on your own. Many employers offer disability insurance as part of their employee benefits package, but the coverage may be limited. It's important to review the policy carefully and consider purchasing additional coverage if necessary. If you're self-employed or your employer doesn't offer disability insurance, you can purchase an individual policy from an insurance company.
The cost of disability insurance varies depending on a number of factors, including your age, health, occupation, and the type and amount of coverage you choose. However, the cost of not having disability insurance can be much higher. A disability can lead to a significant loss of income, which can affect your ability to pay for living expenses, medical bills, and other financial obligations. Without disability insurance, you may be forced to rely on your savings, family support, or government assistance to make ends meet.
During DIAM, insurance companies and industry professionals come together to raise awareness about the importance of disability insurance. They provide resources and educational materials to help people understand the risks of disability and the need for coverage. Many organizations offer free disability insurance calculators, which can help you estimate the amount of coverage you need based on your income, expenses, and other factors.
DIAM is also an opportunity to highlight the achievements and contributions of people with disabilities. Disability is a diverse and multifaceted experience, and individuals with disabilities make valuable contributions to society in a variety of fields. By raising awareness about disability insurance, we can also raise awareness about disability rights and the need for greater inclusion and accessibility for people with disabilities.
In conclusion, Disability Insurance Awareness Month is an important time to raise awareness about the importance of disability insurance and the risks of disability. With the right coverage, you can protect yourself and your family from the financial consequences of an unexpected disability. It's important to review your current coverage or consider purchasing disability insurance if you don't already have it. By working together, we can ensure that everyone has access to the protection they need to thrive and succeed, regardless of their abilities.
There is no better time to re-evaluate your current situation than the present. Connect with a licensed financial professional at Alfa Pride Financial, to assess where you are on your financial journey, and get the financial keys to a worry-free life. Get started today and book a call.
About the Author
Xavier Williams is a licensed financial professional and member of the National Association of Insurance & Financial Advisors. He specializes in protection, wealth-building, and wealth-preservation strategies. He helps clients across the U.S. protect their families and businesses with insurance and financial products to secure a brighter future.