Deficient coverage may cost you someday. Many households and businesses are insufficiently insured. The problem is not necessarily the quality of coverage, but the breadth and depth of it. Your own business or household may be more vulnerable than you realize. Too many people go without disability insurance. If you work in a physically demanding field, your employer may provide short-term disability coverage – but many companies do not. According to the Bureau of Labor Statistics, just 39% of workplaces offer employees short-term coverage, and only 33% offer long-term coverage.1 If you are disabled and cannot work, your income soon disappears. Short-term disability insurance, which may last anywhere from 10-26 weeks, commonly replaces around 60% of it. Not ideal, but better than 0%. About 8% of the time, however, a short-term disability lasts more
Do you really want to live without this coverage? If you forgo it, you may pay a high price. Disability insurance is an important insurance coverage that most people lack. Many people think of it as optional – when they think of it at all. Have you thought about it? If you are a parent or a head of household, you should. The odds of a disability are not that long. The Council for Disability Awareness, a non-profit research and education group, estimates that roughly a quarter of today’s 20-year-olds may become disabled at some point in their working lives.1 If you are a breadwinner going without disability insurance, are you taking a risk? Suppose an injury stops you from working for months or years. Even if your household benefits from two or more incomes, the financial hit could be significant.
What kind of coverage do you need, and why? Do you own a small business? Are you starting one? What kind of insurance should you have? Truthfully, you should consider (and preferably have) three kinds of insurance for your business and its assets. Liability insurance. Absolutely essential. If you run a small business, especially one that provides services of some kind, you will inevitably be sued someday or at least threatened with a suit. Liability insurance will help
How much are you setting aside on behalf of your goals? “Set a goal, make a plan, and save automatically.” This is the motto of America Saves Week, which begins on February 27. America Saves – a project of the American Savings Education Council – calls on Americans to do all three of those things to try and improve their finances. Each winter, it surveys Americans to see how well (or poorly) they are saving. The survey is in its tenth year, and perhaps some recent trends will be reversed in the 2017 edition. Last year, 52% of Americans said that
Man is Mortal. That makes life insurance a little unique and interesting, doesn’t it? We purchase things like health insurance, car insurance and home insurance, then hope we never have a need to use them. Life insurance is different because it’s a widely accepted fact that, sooner or later, each one of us will die. So many choices. When it comes to life insurance, there are many options. You may have heard terms like “whole life insurance,” “term insurance,” or “variable insurance,” but what do they all mean? And what are the differences? Well, first let me point out what they have in common: all life insurance policies provide payment to a beneficiary in the event of your death. Except for that basic tenet, the differences between policies can be major.