Disability can strike like a bolt from the blue: unexpected, unwelcome and unaccommodating. And unfortunately, many people are completely unprepared for the financial hit that it can bring.
Imagine that you are suddenly unable to work, leaving you without an income. You quickly exhaust your savings, undermining your family’s financial security. The money that has been put away for a vacation, the kids’ education and retirement now is spent on gas, groceries and other necessities. The worry is suffocating. The stress and sleepless nights can seem unbearable. What’s worse is that it could continue for a long time. Long-term disability lasts 31.2 months, on average, so the long-term financial impact can be devastating. In fact, more than half of all personal bankruptcies and mortgage foreclosures are a consequence of disability, according to a Harvard study.
All of this begs the question: What can you do? Prepare a financial security plan.
Preparing for disability does not have to be overwhelming. A financial security plan provides a clearer understanding of the financial “big picture,” including:
In this article, we will explore possible sources of income should a disability occur:
As part of a personal financial security plan, try your best to stay healthy. Taking responsibility for your health will have a direct impact on your physical, psychological and financial health.
Whatever your age, it’s never too soon (or too late) to begin. By building a personal financial plan, working with your financial advisor and insurance specialist, you and your family will be better prepared to face the future―no matter what it holds.
Read More: Disability insurance is not the only type of insurance working individuals should consider owning. Learn more about life insurance policies and when you should update them in our blog post, Do You Know if Your Life Insurance Policy is Over-the-Hill?
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