Why So Many Don't Secure their Financial Future
Your Biggest Asset - the Ability to Earn
Do you know what your biggest asset is in life? Many people think it is their house, their car, their boat, or their investments. Gaining more knowledge from the following article will challenge you on that perspective and the way you may be looking at your family's financial future. Working for many years as a Health & Supplemental Insurance Benefit Advisor in the Lehigh Valley of Pennsylvania, I've come to learn that your biggest and most valuable asset is actually your ability to earn an income.
Consider the following questions and review this information on which many people have never been brought up to speed. How many months would it be before you ran out of money if you could no longer work? Let's look at some facts and scenarios that most people don't ever take the time to ponder, so you can better see how to secure the future of your family. It may seem a bit unnatural or pessimistic to think about these things, but it's quite important. There are many not so widely known but effective solutions available to protect your future and the future of your family.
Disability and Sustaining Income
We'll start with a question. Do you know what the average Social Security Disability check is for those who can no longer work? It's certainly not much, and it's nearly always less than what people were earning while they were working. The average benefit right now is between $1200 and $1300 monthly. The maximum benefit is just over $3000 a month. You have to ask yourself, would you and your family be able to live safely and comfortably on that amount of income and still be able to handle the unexpected financial challenges life throws at you at times? Most people would not.
Furthermore, that only accounts for the more simple, unexpected issues that may crop up in life, such as unexpected car repairs or having to replace a needed appliance like a refrigerator. What if something major or even tragic were to occur? Far too often, health and life benefit advisors like myself see situations where someone gets extremely sick, hurt for an extended period of time, or badly injured. In many cases they then cannot work for quite some time or even at all anymore. Because of this they have to jump through hoops to get help from the Social Security Disability system and may not even meet the requirements to get benefits. In fact, there are attorneys out there who will tell you that even people who do rightly qualify for SSDI benefits are very often denied the first time they apply. This is often due to a few simple reasons. Only about 30% of SSDI applications are approved at the first level of the disability claim process. So why are so many Social Security Disability claims denied?
The reasons vary, but there are a few common reasons so many claims are denied. These are a few of the most common reasons. We will list them here, but not go into detail in this article.
- Lack of Solid Medical Evidence
- Prior Denials
- Incoming Earned Income
- Failure to Follow Treatments
- Failure to Cooperate
Right or wrong, Social Security Disability may not be a dependable option for a lot of people, at least not right away.
In addition to this, many people cannot get the immediate help they need from the Social Security Administration because there is a mandatory waiting period. Most people who do get their benefits will begin to receive them after six months of being disabled and applying. Even then, the income level paid out is more often than not a fraction of what people were earning previously while working. If people can't get the help they need from the Social Security Administration, where can they get it from? The answer in this case would come from Disability or Income Protection Insurance which many people do not have or even know about.
Talk about a life altering event. Who can live on a quarter of their previous annual income? Once again, consider yourself. How long would it be until your dreams and even basic livelihood started to fade away? How soon would it be until things start to get away from you financially? For most people, the ability to earn a living is the only asset they have have to provide for their future and the future of their family. Are you willing to let it go unprotected? This is not a gamble you should take.
Short Term Care and Critical Illness Needs in Cases of Emergency
What would happen if you got some type of cancer or another critical illness? Do you have the short term covered with some type of supplemental protection, whether it be cancer, stroke, hospitalization, or other supplemental coverage? Remember, if you're like most people, you don't want to have to think about how soon it would be before you had to look for a new place to live? It might be the worst day of your life if you get the news that you're critically ill. Do you want to deal with constantly suppressing worries about the bills, or would you rather put all of your efforts into recovery? There are plenty of things you can do to protect your family when these troubling events occur. Again however, most people don't want to think about these things, or just don't know there are solutions available like Critical Illness Insurance.
Now let's consider the answer to another often unasked question. If you knew what day you were going to get sick, wouldn't you attempt to prepare for it now? We all know someone who has battled or is battling a critical illness. These illnesses do not discriminate against age, race, color, or religion. We all want to think we're immune, but common sense and reality say we are not. Health Insurance only covers the doctors and the hospitals. Many people fail to realize that and fail to plan for other possible further needs. Who is protecting you then?
The Ultimate Loss - Life
Some people in cases like these will suffer the ultimate loss. God forbid you do not come home to your family. How long will it be until your spouse and kids have to sell the family home? How long will the other assets last? Will the kids have to change their plans and dreams of college? Ask yourself the next important question. If you knew what day you were going to pass away, wouldn't you take every possible step to protect your family's well being and dreams. When is the last time you had to plan a funeral? Almost everyone needs more money already, and before you know it a funeral can cost $7,000 to $10,000, just like that. So how will the remaining bills get paid? If you love your family, shouldn't you take the time now to protect them when you're gone? In this case, Life insurance would be the chosen vehicle to protect and provide for your family.
Look to the Future and Plan for Piece of Mind
All of this has been food for thought as you now hopefully look at things from a different perspective. How will you protect your own well being and your ability to provide for your family? How will you protect and preserve your assets during a possible time of illness? How will you preserve your family and their dreams if you or your spouse unexpectedly pass away? Everyone understands these can be grim thoughts, but rest assured there are solutions to all of these problems that can provide you and your family with piece of mind. Then you really won't have to think so much and worry about them.
The available solutions such as Disability Insurance (aka Income Protection Insurance), Life Insurance, Critical Illness Insurance, Accident Insurance, and Long-Term Care Insurance can provide you with the assurance you need. Each has a different use and purpose, so we'll touch on them briefly before closing.
Disability or Income Protection Insurance pays benefits to people who are unable to work due to illness or accidents.
Critical Illness Insurance is insurance that provides additional coverage and benefits when people have medical emergencies such as heart attacks, strokes, or cancer.
Life Insurance in it's simplest form provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured person's death. There are different types of life insurance, and it can have many other benefits as well depending on the type of policy.
Accident Insurance (aka Supplemental Accident Insurance or Personal Accident Insurance) pays benefits for unexpected, accidental injuries that may occur to people.
Long-Term Care Insurance gives financial support to policy holders by paying for long-term care services. Policies are created to cover long-term services and support which may include personal and custodial care.
Take the Next Step & Contact a Health & Supplemental Benefit Advisor Today
Hopefully this article has provided you with a good deal of information on how to secure the well being and financial future of your family, especially if you haven't considered this information before. You should take the time to sit down and talk with an experienced health and supplemental benefit advisor who can answer your questions and show you what options are available to meet your needs. It may one day make a huge improvement in the quality or preservation of life for you and your family.