Protect My Income

WHAT ARE THE ODDS? What do you think is the likelihood that you will become disabled during your working years? In a recent Gallup survey of more than 500 respondents aged 30 to 65, most estimated only a 16% chance of becoming disabled. In the table below you can see the reality.

Your Age 
Likelihood of Long Term Disability
Average Duration
1 in 3
32 months
3 in10
42 months
5 in22
50 months
1in 10
54 months

Who do you think is more likely to become seriously disabled in their working years? Men have a 43% chance, while women have a 54% chance.
Sources:  1. Gallup Survey conducted for UNUM Corporation (508 respondents, aged 30to 65) reported by Best’s Review. 2. “Why Disability” booklet published by National Underwriter
Disability Insurance is intended to replace lost income. Consider the following and how these facts apply to your own circumstances:
§ Most people in the U.S. are better prepared financially in case of death (usually with life insurance) than if they get disabled, even though the chances are at least three to five times greater (depending on age) that a disability will occur.
§  46 percent of all foreclosures on conventional mortgages are brought about by a disability. Approximately 2 percent are caused by the death of the homeowner.
§ Most people, no matter their income, spend 65 percent to 75 percent of their cash flow. In thinking about this, this means a person should aim toward securing as much disability insurance as they can toward replacing such income.
§ If you put away 10 percent of your income each year, then simple arithmetic says that one year of being totally disabled could wipe out the 10 years of principal that you put into your savings.
§ The Social Security disability Insurance program pays $722 per month on average. The requirements to receive disability benefits are so strict that only about 35 percent of the individuals that apply for benefits actually qualify and wind up receiving benefits.
Source: from the MDRT

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