Disability Insurance – A Family’s Life Preserver
This is the story of Judy and her family, and how an accident almost changed their lives forever.
Once upon a time…
Judy, her husband Martin, and their two school aged children, Keith and Renée, live in a beautiful home in a comfortable, quiet community.
Martin works as a plumber for a very successful construction company that provides excellent employee benefits, including a comprehensive group insurance plan with short- and long-term disability coverage.
Judy, on the other hand, works as a graphic designer for a start-up that doesn’t yet offer group benefits.
To Judy and Martin, the lack of group benefits from Judy’s employer isn’t an issue because she has prescription drug coverage and supplemental life insurance through Martin’s benefits package.
Does every family need disability insurance?
One evening, Judy and Martin decide to speak with their financial security advisor about their insurance coverage. Their advisor points out that although she has prescription drug and life insurance through Martin’s group plan, she does not have individual disability insurance to protect her loss of income in the event that she is unable to work due to an accident or sickness.
Their advisor also explains that it may be possible to add a return of premium rider, which would reimburse some of the premiums paid if the disability benefit is never used.
Judy and Martin agree that disability insurance for Judy is a good thing because they would be on a very tight budget if they ever lost one salary for an extended period of time.
Judy applies for disability insurance that very night.
The unexpected happens…
Later that winter, while out riding their snowmobiles, Judy is involved in a serious accident. Although she survives, she suffers nerve damage to her arm and shoulder, rendering her unable to work. Facing several months of recovery, with no employment income, she submits a disability insurance claim to compensate her lost wages.
What could have been…
Had Judy not had disability insurance, she would not have received any income during her recovery period forcing them to make ends meet on one income.
The financial burden caused by this lack of income could have been a great source of stress for both Judy and Martin, potentially impacting her recovery, and threatening the comfortable lifestyle that they had built for themselves and their children
The moral of the story…
No family is immune to accident or illness, but disability insurance can serve as a life preserver to get you through tough times.
