Life insurance is essential when we are young to ensure we are not a burden on our family in regards to the cost of burial, to cover debt that has not yet been satisfied upon us passing, and income protection for our families to carry on a lifestyle they have grown accustomed to. As we get older, it becomes a legacy play for our children, grandchildren, burial, tax preparation in regard to estate tax, and/or a charitable donation to an organization or group.
Life insurance is a key ingredient and a must for most individuals and families to have the proper protection while growing assets. Like most, we stop there know that if we pass our families are taken care of, BUT WHAT HAPPENS IF WE DON’T DIE……. What happens if we suffer an injury that does not take our life but does not allow us to provide, or provide at the level we are accustomed too? How will the bills get paid and how does food continue to make it to the table?
One of three things are going to happen in the span of one’s life that is out of his or her control. We will either not live long enough, live too long, or get disabled in between. Life insurance is going to cover the not living long enough, and long-term care will cover the living too long, but what is going to fill the gap of getting disabled in between?
Before we answer that question, here are some statistics to keep in mind:
1 in 4 of today's 20-year ol’s will become disabled before retiring
The average Long-Term disability lasts 2.5 years
50% of Americans would be in financial trouble in one month or less following a disability
Long Term disability is policy that can be tailored to fit your needs and budget to help fill the gap in becoming disabled. It is commonly referred to as income protection within a disabling event. As a sole income provider in my household this was truly an eye opener in the event of a disabling event. Many of our professions could not be completed daily with the loss of our voice, our hands, our feet, etc…
These plans are flexible in fitting a person’s budget by selecting proper benefit periods (how long you want a policy to pay out: 2 years, to age 65, to age 67) and elimination period (when the coverage will kick in: day 1, 30 days, 60 days, 120 days, 365) from the date of the disability. 2% of your monthly income is usually all that is needed in protecting up to 60% of your income for the future.
Please reach out to your Rollo Insurance Professional today to explore protecting the GAP in your income protection plan.