Hindsight 2020: Being ready for the unexpected
Nobody likes an unhappy surprise, but as the pandemic has shown, anything can happen. As the adage goes, “the only constant is change.” And recent events have taught us another thing: we should expect the unexpected. For example, did you know that among people in their twenties today, one in four will have to stop working at some point in their career due to an unexpected event? Most people think, “that won’t happen to me,” but at 25 percent, the statistic shows everyone runs a risk of facing a sudden accident or sickness.
Disability Insurance Can Help Provide Protection
In the event you become too sick or injured to work, disability insurance (also known as income protection) can provide you with financial resources while you recover. With this kind of policy in place, you get to focus on your healing — and help keep your savings intact.
One important thing to note is that it’s better to buy disability insurance earlier, rather than later, in your career. Not only will more of your working years be covered when you buy disability insurance earlier, you’ll also more likely pay lower premiums.
Your Household Also Needs Protection
As you advance in your career, you may start building a family life, too. If this is the case, you’ll soon realize how much work it takes to manage a household, especially with children. Perhaps you work outside the home, and your partner contributes to your family’s needs as a stay-at-home parent. Traditionally, insurance policies only considered a partner’s financial contribution from outside the home. But that’s changing.
More and more, society is recognizing the key contributions from spouses who stay at home. In fact, a few years ago, economists attempted to estimate the annual salary for a stay-at-home parent. When they factored in all of the services they provide for the family, including childcare, household management, cooking, and more, they estimated the salary at $178,201 per year!
Spousal Coverage Now Protects Stay-At-Home Partners, Too
If the stay-at-home parent in your home were to be suddenly unable to contribute, your entire family would be affected. Spousal coverage policies recognize this. Such policies can provide income as your family recovers from the unexpected event. As a result, the stay-at-home parent can rest and recover while money becomes available to pay for services such as childcare and other daily needs. Depending on the insurance company, spousal coverage may be available for people in same-sex marriages and civil unions, in addition to traditional marriages.
with a financial professional about how you can protect yourself and your family in light of the unexpected. With disability insurance and spousal coverage policies in place, you’ll be better prepared to handle whatever life may bring.
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2022-132475 Exp. 1/2024