Disability Insurance: Preparing For Life’s Unknowns

By Kenny Russell

People around the globe are witnessing how the COVID-19 pandemic has affected people’s health, impacted markets, caused skyrocketing unemployment, and the list continues.

On a positive note, many families are connecting more; donations are pouring into food pantries; and communities, friends, and neighbors are rallying to help out those in need. There is also profound appreciation for medical personnel on front lines, truck drivers, farmers, grocery workers, teachers and others.

However, there is so much that is unknown with the entire situation and continues to cause angst. How long until everything is back to normal (if ever)? Will there be another spike in the number of positive cases? Will there be lasting affects for those who have recovered? In addition, there is a lingering heartache for those who been deeply affected, and there are ongoing concerns for families on a personal level.

With all of the uncertainty surrounding the pandemic, could people have been more prepared? Is there anything people could have done to mitigate some of the impacts?

In early 2019, if people had considered which was more likely to happen between a global pandemic or an accident or illness that prevented them from working for 90 days or more, which would been the higher probability? The pandemic has shown us how unpredictable life really is.

Plan For The Unknown With Disability Insurance

People might not have been able to prepare for a pandemic, but they can prepare for a disabling accident or illness that can happen at any time by getting disability insurance. A disabling event can affect a worker’s ability to earn the income that a family depends on to survive.

Please note that a pandemic in itself is not a disabling situation. A disability would be an accident or illness suffered by the client that causes them to be unable to do the material and substantial duties of an occupation.

Disabling situations don’t have to be the kind that cause coma or paralysis or be a permanent condition that never improves. Rather, a disability is anything that prevents someone from doing the material and substantial duties of an occupation for a period of time. For example, although surgeons might be able to golf, drive and carry out daily activities with a slight hand tremor, they might not be able to perform surgery -- the main part of their occupation.

Questions To Consider

Could the side effects of cancer treatments cause someone to miss work throughout the week or do a job to expected standards?
How would a heart attack, bypass or other heart condition impact someone’s ability to work?
Would a surgery be 100-percent guaranteed to fix an issue, or ensure there are no complications?
Can we predict a brain aneurysm, depression (in any and all the different forms), diverticulitis, diabetes and possible complications, or any of the numerous medical conditions that can happen at any time?
Does health insurance do more than cover some of the expenses for hospital stays, procedures or medication?

Disability Statistics

Statistics show that:

A 35-year-old has a 50% chance of being disabled for at least 90 days or longer at some point in his or her working years, according to Affordable Insurance Protection, Disability Statistics and Facts.
Individuals are three to five times more likely to have a disabling event of at least 90 days during their working career than they are of dying during their working career, according to the Million Dollar Round Table List of Top 10 Disability Insurance Facts
At least 66% of all U.S. bankruptcies are tied to medical issues, according to LIMRA.

Ultimately, it comes down to whether clients and their families rely on at least a portion of their income, and if that income is important enough to consider protecting. If so, individual disability insurance could be something to discuss with your clients to help identify policies to fit their particular situations and help to protect what is someone’s most valuable asset – their income!

Clients should consider looking into disability income coverage to help protect their ability to provide for their families against some of life’s unknowns – and not wait until a disabling accident, illness or the next pandemic.

Kenny Russell is director, disability sales, for the Disability Solution Center at Crump Life Insurance Services. Kenny may be contacted at [email protected].