Are You Gambling With Your Greatest Assets - Your Income & Your Lifestyle?

Unfortunately - Everyday life can be a gamble! Unexpected accidents, sickness or even death can put an end to your stream of income, add to your expenses and jeopardize your - and your family's - ability to pay the mortgage(s), utilities, auto payments, groceries, etc. 

Here's what the Council for Disability Awareness has to say, "Millions of working Americans are facing a growing crisis: a lack of adequate disability insurance coverage. Today, the absence of emergency savings, rising medical costs, and an overall trend of fewer employers offering benefits to workers has created a critical blind spot for many American workers and their families. Without some kind of income protection, more Americans are experiencing severe financial difficulty if they need to miss work due to illness, injury, or pregnancy." 

Note - Most employer based plans and social security seldom make a significant difference and the income provided is generally taxable!

(See Common Myths Below)

Without Preparedness for the Unexpected - You are Gambling! 

“Gambling is the wagering something of value ("the stakes") on an event with an uncertain outcome" -  https://bit.ly/3J6Bt63
      

10 Ways To Determine Your - and the Family's - Financial Needs In Case of a Disability or Death:

       1) What is your current Monthly Income and Expenses

       2) What are your available Savings targeted to replace Lost Income?

       3) Is there a Family History that would increase your

potential for a Critical Illness?

       4) How long can you and your family go without a Paycheck? 

       5) If you - or another Breadwinner - passed away, how long would your family want to remain in your current home?  

       6) What Solutions are available to best replace an unexpected loss of income and your Family's Needs?
       7) What are the Costs of these Solutions?
       8) How much can you afford to budget for the Solution?
       9) What is the Process for implementing the Solutions?

     10) Where to go to get Unbiased Professional Advice to assist with your Decision-Making Process?

It's Time to Take Action! Once you have completed the above exercise, Don't Procrastinate -- Don't Gamble -- Protect Your Well Being -- Gain Peace-of- Mind!

4 Potential Affordable Solutions To Secure Peace-of -Mind for Yourself & Your Family from the Loss of Income Caused by a Disability

or Death of a Breadwinner

1) Start Setting Aside Substantial Savings targeted for unexpected Disabilities or worse yet - Death! While this is highly recommended by financial planners, it does require that you have the capacity and discipline to put the funds away untouched.

Note - Many wealthy families choose to share the risk with Insurers utilizing Disability Plans! The monthly payments and shared risk are more acceptable than socking large sums of money away!      

2) Research & Buy Private (non-employer based) Disability Coverage -   

Defined - An Individual Disability Plan that protects you and your family from loss of income in the event that you are unable to work due to illness, injury, or accident for a long period of time.

Note - As compared to employer based group or voluntary/worksite benefits, the Individual Disability Plan belongs to you. The dollars you receive from the plan when disabled and are generally not taxable.  

Remember -- "Buyer Beware" -- "...insurance companies, regardless of the type of policy under consideration, are primarily worried about limiting their exposure {Risk}, and will try to limit when benefits must be paid to the fullest possible extent. In the context of long-term disability policies, companies may be obligated to pay benefits to a disability policyholder for years, so they often try to build in provisions that make it more difficult to have a claim approved." Farrell Disability Law 

 

Your Best Plan of Action - 

• Speak with a Professional Income Protection Advisor 
• Discuss with them your specific Individual/Family situation and options. 
• Determine your Budget and your Strategy Costs
• Apply for a Plan with a Highly Rated Insurer while you are reasonably healthy.

Note - A number of Disability Plans are offered on a "Simplified Issue" basis and require no physical or urine test.

 "Understanding the issues can help an individual grasp both the benefits being extended and any potential issues that could restrict how much or how long income replacement would occur." Farrell Disability Law   

These issues include: 

• Your Age & Health - Eligibility - Your age & health, including the existence of certain pre-existing conditions, will affect not only the cost, but also the extent and type, of coverage available.
• What is Covered -- Accidents, illness, etc.   
• What is Not Covered -- Pre-existing conditions and other exclusions.
• Cost of Living Adjustments -- As a part of the policy - or available as a rider - this feature may help keep your monthly disability benefit in pace with inflation. After the first year of a claim, and each subsequent claim anniversary, the insurance company may increase your monthly benefit payments. During times of high inflation, this feature can be very important.
• The Insurers Definition of Disability & Your Occupation -- Generally, there are two definitions: Own Occupation and Any Occupation. "Own occupation, the better option of the two, grants disability benefits if an insured is unable perform his/her job due to a debilitating condition."  Any occupation requires the insured be unable to perform any type of work for which he/she has the skills and qualifications to meet, a standard that is more difficult to satisfy, and is more likely to be disputed if benefits are sought. Further, many policies start with an own occupation disability definition that later converts to any occupation after the first few years of coverage.  Farrell Disability Law
• Pricing -- Based on your Plan Design and Choices (See Below).
• Amount of Monthly Benefit -- Often based on a percentage of your income. Some carriers and plans may limit the amount or percentage.
• Future Increase In Coverage Provisions -- Allow you to increase your coverage amount without the insurance company reexamining your health. While it could potentially add to the cost of your premium, this option may be important if you expect to earn more in the future than you do currently.
• Elimination Period -- The time you must be unable to work before the payments kick in. The standard waiting period is 90 days but can be as short as 30days. This period can extend up to 72 days - Depending on the option you select.
• Duration of Pay -- "Ideally, you may want your disability income insurance benefits to continue until you return to work. However, the duration you’re able to receive benefits may vary depending on the specifics of your policy. A longer benefit period may cost more than a shorter benefit period of months or years. Typical benefit periods include to age 65, to age 67, and to age 70." Treloar & Heisel
• Survivor Benefits -- Survivor Benefits -- The Survivor Benefit is a lump sum payment issued to your survivors, should you die while receiving disability benefits. The benefit payment is usually equal to a multiple of your primary monthly benefit less other income sources.
• Coordination with other sources of Disability Compensation -- Social Security Disability Insurance and Workers’ Compensation are two examples of similar benefits that could reduce how much a person receives each month. Treloar & Heisel

How To Proceed - To obtain more information about a Disability Plan that is specifically designed to meet your individual and family needs and budget, I suggest speaking with a Professional Income Protection Advisor who is not a Captive Agent with a Specific Insurer. 

This specialist will help you better understand your Choices, Costs, Coverage and Assist you with the Decision-Making Process! 

3) Research, Get Advice from a Professional & Buy a Critical Illness Plan/Coverage -  

Defined - Critical Illness Insurance offers you a lump-sum cash payment if you are diagnosed with a life-threatening 

condition -- "Critical illness insurance focuses on cash for recovery from several core conditions such as:

• Heart attack

• Life-threatening cancer

• Organ transplants

• Stroke

• Coronary artery bypass graft surgery" 

  HealthRx
  

In addition to the five typical diagnoses, a more extensive policy may include:

• Paralysis 

• Coma

• Kidney failure

• Alzheimer's disease

• Major organ failure

• Traumatic head injuries

• Multiple sclerosis

• Loss of sight

FAQ -- You may be wondering if critical illness insurance covers COVID-19? The short answer is that it depends. Insurers have been tweaking policies to address COVID-19, and there may be some scenarios in which you are covered. For instance, if you’re on a ventilator for a number of days, there may be a payout. Other policies specifically exclude COVID-19." GoodRx Health 

Who Needs a Critical Illness Plan & The Costs?

"Critical illness insurance may be good for people who don't need a lot of coverage and who can't afford disability insurance. On average, a young person paying for a $10,000 benefit may pay under $10 per month in premiums for coverage. You likely won't have to pay taxes on the benefit if you paid your premiums with your after-tax income. You also won't have to take a medical exam if you choose a low-enough benefit amount." Policygenious

Note - What if you never need to use the Critical Illness Plan you purchase? In that event, having a return of premium rider on your policy can get you some of your money back. Some insurers are even including this feature in the basic coverage! Check with your Income Protection Advisor!

Amount of Dollars provided with a Critical Illness Insurance Plan?

Critical illness insurance provides a lump-sum cash benefit of up to $75,000 - or more - if you experience a first-time diagnosis of cancer, heart attack, stroke or other covered condition. 

This lumpsum payment can be used to cover health insurance deductibles and copays, replace lost income from missed work, pay bills and living expenses, as well as finance experimental treatments and travel. No one tells you how to use the money!

Note - As compared to employer based group or voluntary/worksite benefits, the Individual Critical Illness Plan belongs to you. The dollars you receive from the plan when diagnosed are not taxable. 

Before you continue to Gamble, here are some eye-opening Stats about Critical Illness -  

• 25 year old male non-smoker has a 24% chance of having a critical illness (cancer, heart attack or stroke) prior to turning age 65. American Association for Critical Illness Insurance
• The average out-of-pocket medical cost for someone with a serious illness is about $6,500 [Not including Lost Income]. Serious illness can come with serious costs—above and beyond those covered by health insurance and disability coverage—from co-pays and out-of-pocket expenses for medical care, to lost pay, to even the need for extra child care. Johns Hopkins University
• The average American worker is five times more likely to suffer a critical illness than to die before retirement. The Telegraph
• Critical illnesses like cancer, heart disease and other illnesses cause more instances of long-term absence from work than freak accidents. The Council for Disability Awareness

.How To Proceed - To obtain more information about a  Critical Illness Plan specifically designed to meet your individual and family needs and budget, I suggest speaking with a Professional Income Protection Advisor who is not a Captive Agent with a Specific Insurer. 

This person will help you better understand your Choices, Costs, Coverage and Assist you in the Decision-Making Process! 

       4) Research & Buy Targeted Life Insurance - This policy will help your beneficiary pay the mortgage(s) and other living expenses should you passes away. Some people refer to this coverage as Mortgage Protection Insurance. In fact, it is a Life Insurance Policy - Term or Whole Life - that specifically is designated to provide Income Replacement for a period of time should you pass away! Many people will obtain a policy on both breadwinners in a two income family!

Check out my Blog about the Pros & Cons of Mortgage Protection Insurance - https://bit.ly/3J1r23m

Note - Some Targeted Life Insurance Plans have an "Accelerated Benefit" should you suffer a catastrophic health event. 

Definition of Accelerate Benefit - "Accelerated benefits, also known as "living benefits," are life insurance policy proceeds paid to the policyholder before he or she dies". Alabama Department of Insurance 

This can be a valuable feature/benefit provided by a policy. Check with your Income Protection Advisor to make sure your policy will include this Feature/Benefit!

For the purpose of this Life Insurance Strategy for protecting your family's assets and lifestyle, I'm focusing on the word "Targeted". 

While you may or may not have existing Life Insurance, this strategy suggests that you take out a policy specifically designated for protecting your spouse and children from the potentially devastating financial losses that could result if you - or another breadwinner -  unexpectedly pass away and the loss needed income. 

This Life Insurance Policy will help provide financial security, pay the mortgage(s) for a period of time, helps to pay off debts, help to pay living expenses, and helps to pay any medical or final expenses. It provides Peace-of-Mind!

   

Reminder - “You insure your home. Your car. Your personal property. It makes sense to insure the one asset — your ability to earn an income — that makes your lifestyle and all of those things possible. That’s one less 'what if?' in your life"  https://bit.ly/3x8ZRRU

Don't be Deceived  - Many older Mortgage Insurance Policies recommended - or required by the Mortgage Company and paid for by you, Protected The Lender!

According to the Consumer Financial Protection Bureau, "Mortgage insurance protects the lender, not you... Mortgage insurance, no matter what kind, protects the lender – not you – in the event that you fall behind on your payments. If you fall behind, your credit score may suffer and you can lose your home through foreclosure."

The Basics - This type of Targeted Life Insurance is provided by a Select Number of Insurers. The plan's features include: 

1) Underwriting - The policy is usually a “Simplified Issue” policy, meaning that many of the roadblocks to purchasing a life insurance policy, such as health considerations and exams, will not be there.
2) Disability Component - With some of the insurers, if you  become disabled, your policy will pay your mortgage for a limited amount of time.

3) Cost Containment - Your costs can be contained by determining how long your family would want to remain in the house paying the mortgage, car payments and other living expenses required. Many people treat the plan as a financial bridge while your family members grieve and get back on their feet!
4) Type of Policy - In many cases the policy is a term policy - though Whole Life Plans are available -  so you don’t need to keep paying premiums after your house is paid off.

5) Peace-of-Mind - This Targeted Life Insurance Policy will deliver Peace-of-Mind! You and your family can rest assured that if the worst case scenario happens - Death - your loved ones will be able to grieve and continue to live in the home and maintain their lifestyle.     

How To Proceed - To obtain more information about a Targeted Life Insurance Plan that meets your family's needs - and to keep it affordable - I suggest speaking with a Professional Income Protection Advisor.

Don't Procrastinate - The above 4 Solutions to Lost Income Due To Disability or Death Will Make a Difference and Provide Peace-of-Mind! 
Consider The Following Startling Realities:    

• One in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age. Social Security Administration
• The average American worker is five times more likely to suffer a critical illness than to die before retirement. The Telegraph
• At least 51 million working adults in the United States are without disability insurance other than the basic coverage available through Social Security. American Council of Life Insurers
• Only 40 percent of US households have enough in liquid savings to cover at least three months of their recurring expenses, and only 28 percent can cover at least six months. The Western Reserve
• Three out of ten American adults indicate they can’t pay an unexpected $400 bill without having to carry a balance on their credit card or borrow money from friends, family, or the bank. The Federal Reserve
• A 2019 study of consumer bankruptcy filings found that 77.8% of debtors cited income loss as a contributor to their bankruptcy. This included 44.3% specifically citing medically-related work loss as a contributor. National Library of Medicine

7 Eye Opening Myths & Facts About Disability: 

Myth 1 -- I'm to young -- Wrong!

Just over 1 in 4 of today’s 20 year-olds will become disabled before they retire. Council for Disability Awareness

Myth 2 -- Social Security Disability will take care of my needs -- Wrong! 

"From 2009 to 2018, only 32 percent of Social Security Disability Insurance (SSDI) claimants had their applications approved:  21 percent at the initial application stage and the remainder after a reconsideration or appeals process." Social Security Administration

Myth 3 -- My Employers Disability Plan - if available - will cover my needs -- Wrong! 

 "Employer-sponsored policies typically replace about 60% of your income. If your coverage is paid with pre-tax dollars, any benefits you receive are taxed, which further reduces your funds" USbank

Myth 4 -- Most Accidents Happen On The Job - where I am covered by Workers Compensation -- Wrong! 

2.8 of every 100 workers were injured at their workplace. This number has remained unchanged since 2018. US Bureau of Labor Statistics
 

Myth 5 -- Accidents are the main cause of disabilities -- Wrong! 

 "Many people assume accidents are the most likely cause of disability. But they are actually the cause of less than 10% of disability cases." Webmd.com 

 Myth 6 -- The odds of my becoming disabled aren't so bad -- Wrong!

Your odds of becoming disabled before you retire are about 1 in 3. And some of the causes of disability might surprise you. Some conditions that cause people to miss work include: >Arthritis Back pain   > Heart disease  > Cancer  > Depression > Diabetes 

Myth 7 -- My expenses will not increase with a disability -- Wrong!  

 "Researchers estimate that households containing an adult with a work-disability require, on average, 28 percent more income..." National Disability Institute(NDI) 

Want More Information On Protecting Your Income and Your Family's Well Being?

Talk with Maxine Collin - a Professional Income Protection Advisor! 

Maxine has over 30 years as an Income Protection Advisor. She'll help you make an Informed and Empowered Decision. 

Click Here and If Your Interested -- Reply "Yes" and include your Contact info. 

 - will answer your questions including the Pros, Cons & Costs. Maxine can also be reached at 216.377.9310 - Text or Leave a message!