Disability Insurance: Sadly overlooked by many

According to recent reports, one-third of the workers in America are likely to become disabled for extended periods even before they reach the age of retirement. Thus, having a disability insurance is a positive investment for when this time comes, even if we are hoping against it. Mrs. Cindy Wrenn of Knoxville, Md. realized this when she had brain aneurysm and stroke at the age of 28 years old. Upon her disability, she realized that the premiums for disability insurance she and her husband paid for have not just been a drain on their checking accounts.

Los Angeles, California, July 6, 2007 – It was on February, 2002 when Mrs. Wrenn signed up for a long-term policy of disability insurance. It was a supplement to an insurance policy she obtained through her licensed title agent job. Right after her stroke, these policies paid up to 70% of her salary during the next six months before she was fully well to get back to work full time.

Since the premiums have not been very outrageous, Mrs. Wrenn and her husband did it even though they thought they were very young yet to be struck with illness and are secure in their jobs.

The disability insurance actually provides a replacement of the partial income being earned by a disabled person. Consequently, these payments help out for the disabled person's family to avoid dipping into savings, selling a home or changing their lifestyle radically just because of the illness and temporary disability that struck.

There is a large possibility for working people in America to be stricken with disability rather than dying prematurely. However, people with life insurance are twice as many than those with disability coverage, according to statistics of the industry.

According to reports by the Department of Housing and Urban Development, today's home foreclosures are largely attributed to illnesses of one of the members of the family.

The Social Security Administration reports that one-third of the workers who are 20 year old presently may become disabled before they reach the retirement age of 67. Since the cause of disability is primarily because of chronic disease. There is also a large possibility of being diagnosed with problems related to musculo keletal and cardiovascular and cancer rather than becoming victims of work-related and/or non-workplace accidents. This study was brought about by the Life and Health Insurance Foundation for Education, which is a non-profit organization aiming to inform the public about their need to obtain insurance.

Craig Sampson, a lawyer based in Richmond, VA said that even if job-related expenses decreases when someone become disabled to work, other expenses may also begin to soar. Homes may need to be altered in order to accommodate a disabled member of the family. Sampson said that being disabled leaves a person to also become financially crippled quickly.

Many people have testified to the unexpected financial security they have found even when disabled due to having a disability insurance.

Disability insurance have two major types, the short-term coverage and the long-term insurance. The former are often offered by employers and usually covers the first stages of disability. It may provide income to the disabled from a week up to one year or two, according to the policy.

On the other hand, long–term insurance pays off after the short-term disability coverage already expires. It helps out in replacing income for a preset period.

It is sad to note that 42 percent of present full time workers do not have short or long term disability insurance, as reported by Michael Fradkin, vice president for disability product management of Metropolitan Life Insurance Company.

It is but important to realize the importance of disability insurance policy and understand about the coverage for the premiums they have to pay since this kind of insurance is especially helpful for unexpected demise in work and normal body functions of a worker.