Americans want to be able to protect their financial future, but lack a primary coverage in that plan.
A study performed by Northwestern Mutual, called The State of Planning in American, has shown that being able to maintain a certain standard of living is a primary goal among residents of the United States, but few are actually taking the necessary steps, such as purchasing disability insurance, to make sure that their ability to achieve this goal is protected.
The top financial goal for Americans is “having a good standard of living in retirement” (77 percent).
Seventy six percent said that their goal was not to drop below the standard of living to which they are currently accustomed, and 62 percent said that they wanted to be able to protect their income in the event that they should ever become disabled.
At the same time, only 8 percent of the survey participants had disability insurance coverage.
According to the Northwestern Mutual vice president of disability income insurance, Sandy Botcher, “From the moment you start working until the day you retire, your ability to earn an income is your most important financial asset.”
Botcher gave the example that over a forty-year career, a $60,000 annual salary will total $2.4 million, without taking into consideration raises, inflation, and the potential for long term growth in invested retirement savings throughout the years. But what individuals should be asking themselves is what happens if they should become disabled and their ability to earn an income should cease.
Buying a policy that will cover against that type of circumstance can provide a vital monthly benefit that can help to replace the income that has been lost when the individual is no longer able to work, as well as to help to pay for ongoing financial obligations and even keep up with current financial goals.
Individual disability insurance is different from that received through the workplace, as it belongs to the policyholder and is portable, so it will go wherever that person goes, regardless of his or her profession. Taking this extra step to protect the paycheck can be a critical part of securing a financial future.