17 percent of American families (1 in 6) have at least 1 adult who is disabled from employment (Source: 2000 U.S. Census) 
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82 percent of American workers have inadequate or no disability protection (Source: Consumer Federation of America and American Council of Life Insurers, 2003) READ MORE
Disability Insurance IQ:
Why Disability Insurance is a Must for Singles
Being single has many liberties. You have the power to make your own choices and priorities without having to negotiate or compromise with a partner. However, the single life also has drawbacks. There is no one to take care of you when you suffer a setback. This is especially true when you experience a financial hardship.
If you were to become disabled, and the chances are greater than you think, you would lose your sole source of income – your ability to work and earn an income. Without a spouse’s second income to rely on, your finances could be drained quickly.
Statistics show that people in their 30s are three times more likely to suffer a disability than they are to die, according to the National Association of Insurance Commissioners.[1] The Social Security Administration[2] says a 20-year-old has a 3 in 10 chance of becoming disabled sometime before reaching retirement age, and 3 out of 10 wage earners will become seriously disabled in their lifetimes.
Disability doesn’t necessarily stem from a freak accident at work or from having a dangerous job. It can come in the form of an accident, a disease, or an illness. According to the U.S. Department of Education and the National Institute on Disability and Rehabilitation.[3] the biggest causes of disability include heart disease, back injuries and cancer. Mental disabilities, like anxiety and depression, follow close behind.
Though Social Security offers some disability protection, the wait can be long and rejections are common. A safe way to protect yourself and your wallet is to have at least one disability insurance plan. Disability coverage will help cover your monthly expenses (such as your mortgage, utilities, car payments and medical bills) while you are unable to work. Even if you stop working, bills do not stop accruing.
Check with your employer. You may already have a disability insurance policy. If you do, find out what it covers. What is the waiting period? How long does the policy pay out for? If you have a group policy that offers minimal coverage, it is wise to purchase an individual policy to supplement it. Policies vary greatly with many options in price and coverage – so you can tailor a package that is just right for you and your lifestyle.
Since singles tend to have fewer financial obligations and responsibilities, they also tend to have smaller savings. This is a bad situation to be in if a disability occurs. According to a Nov. 27, 2007 article at CNNmoney.com,[4] singles need to have a savings built up of at least six to 12 months of their income. It also states that the more you make, the more you should have tucked away. This money can be used to cover day-to-day expenses while you wait for your insurance coverage to kick in – this waiting period can last up to 730 days depending on your chosen benefit period.
Just because you’re single doesn’t mean you don’t need to be fiscally sound. Protect yourself and your future by getting a disability insurance policy.
References
- National Association of Insurance Commissioners http://www.naic.org/
- Social Security Administration http://www.ssa.gov/
- U.S. Department of Education and the National Institute on Disability and Rehabilitation http://www.ed.gov/about/offices/list/osers/nidrr/index.html
- Chatzky, Jean. “Single? You Need a Plan of Your Own.” CNNmoney.com. Nov. 27, 2007. http://money.cnn.com/magazines/moneymag/moneymag_archive/2007/12/01/101187977/index.htm