Some quick statistics: - 13% of Americans will die before age 65
- 28% of Americans will face a long-term disability before age 65 and be unable to work and/or earn an income
Despite these facts, Americans are twice as likely to be insured on their lives as on their long-term health.
Life insurance is important, but is much less likely to be redeemed than a suitable long-term disability insurance contract.
Consider that 1 in 2 personal bankruptcies is the result of costly medical bills from years of medical treatments.
Then, consider that 75 percent of those bankrupted families actually had health insurance coverage. At some point, health insurance companies stop paying for long-term care, shifting the burden to the injured.
A person with a long-term disability cannot work his "normal" job and cannot earn his "normal" income. Financial distress usually follows.
Many employers offer long-term disability insurance that can help protect against a long-term medical crisis. Do some homework and then verify your finding with a qualified financial planner. Long-term disability comes in many flavors and it's important that your individual coverage suit your long- and short-term financial goals.
Many families go broke because of long-term health issues and a large percentage lose their home to foreclosure. Adequate long-term disability insurance can help prevent both of these scenarios.
Source
6 Money Fears
David Futrelle
Money Magazine, December 15, 2005
http://money.cnn.com/2005/09/13/pf/fears_dieyoung/index.htm
