Single? Income Protection Is a Must
Why you should secure individual disability insurance
Being single means you can make your own choices and priorities without negotiation or compromise. However, there are drawbacks to the single life. If you were to suffer a setback, illness or injury, there is no one to take care of you or your income – no income protection. Without a partner’s second income, your finances could be drained quickly if you couldn’t work.
The chances of suffering a disability are greater than you may think. According to National Association of Insurance Commissioners, people in their 30s are three times more likely to suffer a disability than they are to die. The Social Security Administration states that a 20 year old has a three in 10 chance of becoming disabled before reaching retirement age. And, three out of 10 wage earners will become seriously disabled at some point in their lifetimes, according to the Social Security Administration.
Single people tend to have fewer financial obligations and responsibilities. However, they also tend to have smaller savings, which is bad news if a disability occurs. According to an article at CNNmoney.com, singles need to have a savings of at least six to 12 months of their income, or more depending on how much you earn. This savings could cover day-to-day expenses while you wait for disability insurance coverage to kick in, which could last up to 90 days.
Disabilities just don’t happen with accidents at work, they can be any random accident, a disease or an illness — anything that prevents you from earning a paycheck. In fact, the biggest causes of disability include heart disease, back injuries and cancer, with mental disabilities like anxiety and depression following close behind, according to the U.S. Department of Education and the National Institute on Disability and Rehabilitation.
True, Social Security offers some income protection, but the wait is long and rejections are common. A safer way to protect yourself and your income is disability insurance. Bills don’t stop accruing if you stop working. However, with disability insurance, your monthly expenses (e.g., mortgage, utilities, car payments and medical bills) will be covered if you can’t work.
Do you already have a disability insurance policy? If you are not sure, ask your employer. If you do have a policy through work, find out what it covers, what the waiting period is and how long the policy pays out for. If your group policy offers minimal coverage, you should purchase personal disability insurance policy to supplement it. Personal disability insurance policies have many price and coverage options, so you can tailor a package that is right for you, your lifestyle and your budget.
Just because you’re single doesn’t mean you don’t need to be fiscally sound. Protect yourself, your income and your future by getting individual disability insurance protection.
- National Association of Insurance Commissioners
- Social Security Administration
- U.S. Department of Education and the National Institute on Disability and Rehabilitation
- Chatzky, Jean. “Single? You Need a Plan of Your Own.” CNNmoney.com. Nov. 27, 2007.