Financial Security for Every Life Stage - Dakotaland Federal Credit Union

Financial Security for Every Life Stage

Tuesday, May 16, 2017

Financial Security for Every Life Stage

As an individual progresses through life, he or she may decide to get married or have children. In that case, they may need financial security for all of their family’s life stages. Regardless, as life unfolds, responsibilities and priorities change. And these changes do not matter to disability insurance. No matter the circumstances, the proper disability insurance offers financial security.

Disability Insurance is a Major Form of Financial Security

Let’s simply use an example of disability insurance’s benefits. Let’s say you have a member that is married with one child, and is also the sole breadwinner. At this point in their life, financial security is no longer a luxury, it is a responsibility.

Here are a few of the things you need to financially protect:

· Lifestyle
· Spouse’s lifestyle
· Family’s retirement funds
· Child’s educational future
· Family’s future dreams

The member seems to be doing just fine with their current income. They have great health care, life insurance, and car insurance. And have started to save for their own emergency fund, retirement, and their child’s education. All they need to do is work another couple of decades and then they can retire in bliss.

They forgot something. Income protection. Every stage in life depends upon the ability to earn. What if one day someone can no longer work for at least a year or so…. What now? What will the member do?

We Insure our Cars but What About the Income That Buys the Car

Or, they have great health insurance to cover health costs, but what happens if the illness halts income?

The spouse may be able to go to work, but their income potential is much higher than theirs. Life would be drastically different.

Disability Insurance is Income Protection

If this scenario sounded frightening, think about this. The average individual disability claim lasts 31.6 months. And 46 percent (46%) of adults could not cover a $400 emergency, or would have to sell something to get the money.

Don’t Be Penny Wise and Pound Foolish

Disability insurance (aka payment protection) is Paycheck Protection ….. It replaces a portion of someone’s income if they should ever become ill or injured and unable to work. It would be silly to have great health insurance and car insurance, but not have income insurance.

Categories: 2017

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