According to recent surveys, one-third of higher-income Americans ($75,000 and up) are living paycheck to paycheck, and MarketWatch recently reported the average family has less than $1,000 saved.
Even if you have health coverage, a critical illness such as cancer, stroke, or heart attack would reduce your family’s income by about $12,000, eHealth online suggests.
Being unable to work can create a significant income gap. You usually only receive about 60% of your salary from group long-term disability insurance furnished by your employer.
However, there are two forms of insurance that can protect you and your family in the event of a critical illness or a work-stopping disability.
Critical Illness Insurance (CII) and Disability Income Insurance (DII) help provide your family with a strong financial safety net.
After a major covered health event like cancer, kidney failure, or a heart attack, CII supplements typical health insurance coverage, providing a lump-sum payment to defray out-of-pocket costs and lost income.
DII covers the most common causes of disability, including illnesses and serious accidents, and pays a monthly benefit covering part of your salary, bonuses, and commissions. It helps you meet your expenses while you can’t work.
Many Americans will be working longer than they had planned. As we age, the likelihood of an illness-related disability or a work-related disabling injury increases.
No matter what your age, a disability or critical illness can cut short your career and financially devastate your family.
With CII and/or DII, both you and your family will be glad you planned ahead.