Because so many underestimate their potential to become disabled, they aren’t prepared for the financial ramifications:

Just one year of being totally disabled can wipe out ten years of savings. 

This is why many people who rely on their salary to cover living expenses choose to protect their earnings with Long Term Disability (LTD) insurance.

Why don’t more people insure their income?

Most people simply aren’t prepared for a disability. Not only do 90% of individuals underestimate their own chances of becoming disabled, they also don’t understand how LTD insurance works and how it can help.³  Here are some common reasons people go without coverage:

• LTD insurance is arguably one of the complex types of insurance. There are myriad individual and group plans, each with a wide range of options and provisions that stipulate how benefits are paid. In a survey conducted by the Life Insurance and Market Research Association, only 4% of respondents had a clear understanding of how disability insurance works. Many confused it with other types of coverage like Long Term Care. Others were confused by disability definitions.
• Healthy people don’t think they need it. The chances of experiencing a disability are much higher than most people appreciate. Almost 90% of LTD claims are caused by illnesses, not accidents, and aren’t work-related.⁴
• It’s offered by their employer. Even those fortunate enough to have this employee benefit often don’t understand the limitations of group LTD, including taxation, narrow disability definitions, and potential coverage gaps.
  

  What’s the best way to address this critical blind spot?

  Too often, people wait until it’s too late to consider LTD insurance. To secure coverage, you generally need to be employed and relatively healthy. If you have suffered a disability in the past, it  can be difficult to obtain coverage.

  An independent LTD Advisor can walk you through the entire process. An Advisor will explain how LTD insurance works and seek quotes from various insurers to find the best policy for your situation. Access to various options is especially valuable if you have a medical condition or previous disability. If you rely on your income, don’t wait. Contact an Advisor to learn more.

  ¹Council for Disability Awareness: https://disabilitycanhappen.org/disability-statistic/
  ²Ibid.
  ³Ibid.
  ⁴Ameritas: https://www.ameritas.com/disability-income/