Disability Insurance

 

My second strongest passion is disability insurance or guaranteed income when you can’t work insurance.

As a widow with 2 minor children, also known as a full-time single parent, I’m acutely aware of the financial risks of not being able to work.  When you don’t have a partner or don’t have a partner who earns a decent income, all of the financial responsibility is on you.  That’s a very heavy load, especially if you’re not used to bearing it on your own.  (As a widow, I was entitled to an awesome federal government benefit – Social Security Survivors Benefits.  It’s a benefit that’s obtained from the Social Security Administration and provides the parent or guardian of a child whose parent died with a monthly payment in an amount based on how much money the parent earned during the last 3 years of his/her life and other factors.   I’m SO grateful that this benefit exists!)

I was widowed at the age of 36.  My late-husband Karl was age 39.  We had been dating and then married for 17 years.  We have 2 kids, then ages 6 and 11.  He was fairly healthy and wasn’t having any medical issues.  We didn’t know that his heart health was as bad as it was.  He died of an unexpected heart attack in our home in Cottage Grove in 2009.   My kids and I weren’t home.  A neighbor boy found him.

Karl & me in Chicago on set of Untouchables tv show in Summer 1993          Karl & me on day of college grad copylast Christmas family photo w: Karl Dec. 2008

Needless to say, I was shocked and lost ;(.  Karl had been the center of my world for 17 years and since I was 20 years old.

life insurance with red heart & words & hand holding heart graphic

 

After we were told about Karl dying, 1 of my son’s first questions was whether we would still live in our house.  I said that we would because I had bought life insurance on Daddy, so we will have money to pay the mortage.  He was so relieved!

Karl's memorial in living room

End of life expenses cost a lot!  I didn’t plan an extravagant funeral, burial, & celebration of Karl’s life and received help with the food form church members.  However, they still cost approximately $10,000 in 2009.

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When I chose the life insurance policy death benefit, I didn’t factor the totality of the situation.  I chose a benefit level that covered only the cost of our home’s mortgage :(.

The Kids & me first Christmas w:o Karl 2009

My kids were very negatively emotionally affected by Karl’s death.  As a result, they have needed a lot of my time and effort, which means that I’ve been working significantly less than I would’ve been had Karl been alive.  If I had bought Karl a life insurance policy with a higher death benefit, then I would’ve been able to hire a nanny to help me.

Another effect of being widowed and, therefore, not having access to Karl’s income is that I’m solely responsible for my financial stability.  Therefore, if I’m unable to work, then I won’t have his income to lean on any longer.  I certainly hadn’t factored this in to deciding the life insurance benefit amount back when I was 35 years old.  In fact, I didn’t even consider that I might not be able to work before I retired because I was healthy and fit and planned on working as a paralegal, which isn’t hard on your body.  (I haven’t yet had to feel the full reality of this since I receive Social Security Survivors Benefits for my children.  However, most single people live with this reality.)

It's called the American Dream because you have to be asleep to believe it

More than 1 in 4 of today’s 20-year-olds can expect to be out of work for at least 1 year because of a disabling condition before they reach the normal retirement age. (Social Security Administration, Disability and Death Probability Tables for Insured Workers Born in 1997, Table A)

Most Americans cannot pay their expenses long-term without working full-time, even with Social Security Disability Benefit.  57% of folks have enough in savings to pay their bills for 6 months or less. (Council for Disiability Awareness, 2014).

lady holding $

Disability insurance provides you with a predetermined monthly payment in an amount that’s based on how much you earned before you become disabled, the risk of you becoming disabled with your current work, your medical and psychological histories, where you live, what activities you do for recreation, what percentage of your income you want to insure or know that you will receive, and other factors.

Short-term disability insurance is for people whom are disabled for less than 6 consecutive months.  The benefit payment kicks in after 1 to 2 months of disability and lasts for up to 6 months.  It’s expensive.

Long-term disability insurance is for people whom are disabled for more than 6 consecutive months.  The benefit payment kicks in after 6 months of disability and lasts for an amount of time that the client decides when he/she purchases the insurance.  It’s more affordable.

I shop around to find you the best coverage at the lowest price.

Please contact me and I’ll make a great financial plan for you (and your significant other), starting with life and disability insurances.  Please contact Foresight Insurance Services in 1 of the following ways:

 

 

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