DISABILITY INSURANCE

T. Johnston 

Most of us have never consider the ramifications of being disabled and most of us have never given serious thought to owning long term disability insurance, but we should and here is why. There are very good reasons to own it other than just giving people like me commissions and the insurance companies' profits.

The three best are:

1) This kind of coverage will prevent the total destruction of your assets and nest egg
2) The money you receive is tax free
3) There is a 50% chance you will need these benefits before you turn 65

When it comes to a disability if you don't have disability coverage you are rolling the dice.

A healthy 35 year old has a 50/50 chance of being disabled before age 65. I don't necessarily mean a disability like becoming a Para or Quadriplegic, but you could suffer a permanent disability that means you can no longer work or be off work just long enough to devastate you financially.

Did you know your chances of becoming disabled for 3 months or longer are higher than your chances of dying prematurely? And you have life insurance! ------- You do have life insurance--Right?

A lot of folks believe that workers compensation or government benefits will pay them should they become disabled. Workers compensation will only provide benefits if the disability is work-related, if it can be proven the disability is directly attributed to your work. You aren't covered if you are involved in a traffic collision on your way to work or you popped your knee out while playing weekend softball. The injury or illness must have happened on the job for you to collect.

There have been cases of people going to work in excruciating pain and trying to make it look like the injury happened at work simply to get coverage. These attempts always end in failure with the person trying to get it in serious trouble with their employer as well as having a disability.

Canada Pension Plan (CPP) does pay disability benefits until age 65, but only if the disability is prolonged and severe. What most would consider permanent. A similar situation exists in the United States with social security benefits.

One of the major reasons for bankruptcy is job loss and often that job loss is caused by a disability. This holds especially true for self-employed entrepreneurial types. A disability that will not allow you to work doesn't have to be permanent to destroy you financially.

Think about this--if you were disabled permanently and you had long term disability insurance your benefits are tax free and guaranteed to age 65 (Caveat-if you purchased a - "to age 65 policy").

And remember a disability doesn't necessarily mean your life will be shortened-some disabled folks live well into their nineties..

T. Johnston CFP-- Certified Financial Planner - owns Blue Collar Financial Planning.Com Is an expert in Retirement, Estate and Protection planning. For more information about the importance of Long Term Disability Insurance and others ways to protect yourself and your family from financial devastation, visit his website--Today! Article Source: http://EzineArticles.com/?expert=T._Johnston