Alternatives to Disability Insurance

Alternatives to Disability Insurance

Ask yourself this question; is my most valuable asset as well protected as my other assets? In other words, have you made sure that if your income stopped because you were sick or injured and couldn't work, you wouldn't have to worry about how your bills were going to get paid? If you think you are already protected, think again.

Halfway Measures

Most alternatives to replacing lost income are only halfway measures.

  • You can't rely on Social Security.

    Qualifying for Social Security benefits is very difficult because the disability must prevent you from doing any kind of work - not just your usual job. The definition of disability for social security states that one must be completely disabled with no hope of recovery for a period of at least one year, or have a disability expected to end in death.

    If you think you could get by on Social Security benefits, you may want to reconsider.

  • You can't rely on Workers Compensation.

    Workers Compensation only covers job related sickness or injury. In addition, these benefits are limited.

  • You can't rely on your savings, on your family or on a bank loan.

    If you saved just 5% of your income each year, a six-month disability would wipe out 10 years of savings, and when savings are gone your other assets would begin to dwindle as well. After your savings depleted rapidly, would family or friends be so willing to help you out? Even a bank wouldn't want to give a loan to a disabled person with no income and no guaranteed prospect of being able to repay.

The Sure Thing

If you want to be sure that your income is adequately protected during a disability, you need a disability insurance protection plan. But while such a plan can be designed to fit your individual needs, it is only as good as the Company and the disability insurance policies that stand behind it.