- Social Security will be there to take care of me: Not likely. In fact, Social Security denied some 63 percent of all disability claims in 2004.
- I can always do it later!: You know as well as I do that people do not usually get healthier as they get older. And the older we are, the more the coverage will cost.
- I am never going to get sick: Oh really. Statistics show that 12% of individuals age 16 to 64 have a disabling illness. At the age of 30, you have a 51% probability of having at least one disability lasting three months or more (Commissioner’s Individual Disability Tables, CSO).
- I can use my savings!: Okay. But even if you are disciplined enough to save 10% of your salary, a one-year disability would eliminate many, many years of savings.
- It’s waaaay too expensive: The average annual cost is typically one to three percent of what you earn. One to three percent!
Give it some thought. Do you count on your paycheck? Are you prepared to go without one for six or eight months, or longer?
Right, then. Next, we will look at some of the mechanics of the application process, the riders and extras – and what to steer clear of, too.