Disability Income Insurance Necessary Coulombe Lists Five Most Common...

Nearly one out of every three workers will suffer a disability lasting three months or longer at some point in their career. For those unable to work due to an unexpected illness or injury, paying bills and the mortgage or rent can be difficult without adequate disability insurance coverage. Disability insurance provides replacement income when you are unable to work and earn a paycheck. The unfortunate reality is that disability insurance is one of the most overlooked and misunderstood types of insurance, and far too many Americans are unaware of their options.

May is Disability Insurance Awareness Month and as part of this national education campaign, Curt Coulombe with Elliott and Associates Wealth Advisors, Inc. in Atlanta, Georgia is helping to dispel the most common misconceptions that often prevent people from getting the coverage they need.

Most working Americans don't have adequate income protection and as a consequence leave themselves financially vulnerable. According to the U.S. Department of Labor, more than 70 percent of all employees don't have long-term disability coverage. Yet, the risk they face of suffering a long-term disability is significant. According to study released by the nonprofit Life and Health Insurance Foundation for Education (LIFE), the probability of a white-collar male suffering an unexpected illness or injury lasting 90 days or more is greater than 1 in 4; for women, the probability is higher (nearly 1 in 3).

"Many people fail to realize that their ability to work and earn an income is a valuable asset that must be adequately insured, regardless of what they do for a living," says Coulombe. "Without a paycheck, millions of Americans would see their bills pile up in a hurry. Many Americans mistakenly believe that government benefits will be available to them if they become disabled but that's far from a sure thing. If you work for a living, make sure you have adequate disability insurance so your finances will be adequately protected should you find yourself unexpectedly injured or ill and unable to work."

Coulombe outlines the following five most common misconceptions about disability insurance:

1. I'm not in a dangerous line of work. Whether you work behind a desk or on a construction site, if you are in your primary working years you need disability insurance. Many people assume disabilities are caused by freak accidents, but JHA reports that only 10 percent of disabilities are a result of injury. The vast majority of long-term absences are due to illnesses.

2. My employer will cover me if I become disabled. While many millions of Americans have disability insurance coverage through their employers, a majority of companies do not offer the option to their employees. Talk to a representative in your employer's human resources department to sort out the coverage options available to you. If you don't have disability insurance through work or it's not adequate, talk to a qualified insurance professional who can help you evaluate purchasing a policy on your own.

3. I am young and single and don't need disability insurance. If you work, you should consider disability insurance, whether you're younger, older, single, married, or with or without children. People who become disabled and can't work not only may need to continue providing for loved ones, but for themselves as well. A disabling injury or illness could lead to medical bills, modifications to your car or home, or other unforeseen needs that can be quite expensive, on top of your everyday expenses. Also, it is to your benefit to purchase disability insurance at a younger age when you are healthier and can lock in a lower premium rate.

4. Workers' Compensation will cover me if I become disabled. Workers' Compensation only covers you if you get injured, ill or die as a result of your job. Most employer- or government-sponsored Workers' Compensation programs pay only limited benefits and follow strict guidelines. Purchasing personal disability coverage will ensure that you are financially protected in the event you become ill or disabled outside of the workplace.

5. The benefits I can get through Social Security will suffice. It is extremely difficult to qualify for Social Security disability benefits. According to the Social Security Administration, roughly 60 percent of those who applied were initially denied. Eligibility depends on whether or not you are incapable of working at all, not just your usual occupation, and if your condition is expected to last a year or more or will result in death. If you do qualify, it can take five months or longer for benefits to kick in and, on average, pays out only slightly more than $1,000 a month.

6. I am in good health; I won't become disabled. If you think your chances of suffering a disability are slim, consider that if you become disabled, you'll likely experience it for a long period of time. Even amid increasing life expectancy and advances in medicine, a recent study commissioned by the LIFE Foundation found that the duration of long-term disabilities has significantly increased since the 1970s and 80s. A 35 year-old, white-collar male who suffers a disability lasting 90 days or longer will be out of work for an average of about six years! An illness or accident that keeps you out of work can be very costly because medical bills, prescriptions and other unforeseen expenses must be covered on top of what it already takes to care of your family and cover everyday costs.

For more information about disability insurance and tips for evaluating your needs, visit www.lifehappens.org/disabilityinsurance.

About Disability Insurance Awareness Month

Disability Insurance Awareness Month (DIAM) was created to get American workers to think about the need to protect their greatest asset - their ability to earn an income. Held in May, DIAM is an industry-wide effort that is coordinated by the nonprofit Life and Health Insurance Foundation for Education (LIFE).

Mr. Coulombe is Vice President of Elliott and Associates Wealth Advisors, Inc. in Dunwoody, Georgia. He can be reached at 770-451-2446 or curt.coulombe @ investfinancial.com.

www.elliottandassoc.net

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