6 Stats on Why Small Business Owners Need Paycheck Protection AKA Disability Insurance
As a health, life, and disability insurance agent covering Raleigh, Durham, and the surrounding areas, I meet regularly with small business owners. Many of these small business owners do not own disability insurance. Here are some stats from the Council of Disability Awareness:
1. Over 36 million Americans are classified as disabled; about 12% of the total population. More than 50% of those disabled Americans are in their working years, from 18-64.
2. The average long-term disability claim duration is 31.2 months.
3. One in eight workers will be disabled for five years or more during their working careers.
4. Medical problems contributed to 62% of all personal bankruptcies filed in the U.S. in 2007, a 49.6% increase over results from a similar 2001 study.
5. The average SSDI monthly benefit payment was $1,190 for males, and $928 for females.
6. Less than 5% of disabling accidents and illnesses are work related. The other 95% are not, meaning Workers’ Compensation doesn’t cover them.
To my small business owner friends: Can you afford to go 31.2 months without a paycheck? Can you support yourself and your family on about $1000 a month? If the answer is no to either of these questions, please talk to me about disability insurance. Its not as expensive as you might think and there's even a disability plan which will refund all your premiums if you don't use it. Your ability to earn an income is your largest asset - make sure its insured.
Top 3 Reason Why Parents Should Buy Life Insurance for Their Children
"I don't want to think about my child dying" is what I hear many times, and I don't want to think about MY child dying either. So why should we buy life insurance for our children?
1. Think of life insurance as an investment in their future. We're giving our child a financial head start when we do it and believe it or not, in many cases we can do that for around 7 cents a day! Can't do much for 7 cents a day any more.
2. To protect their insurability. Depending on the policy and the carrier, your child may have the ability to continue to buy additional life insurance throughout their life at standard rates regardless of their health history. I can tell you from experience this is BIG!
3. Lock in low premiums on permanent plans. Its very inexpensive to purchase permanent plans for children. I recently spoke with a grandparent who had purchased their grandchild a permanent plan several years ago. The cost was around $30 a month, and now today the grandchild has over $20,000 of cash value they can use for college. (And this cash value doesn't count against them when completing a student loan and/or scholarship application nor does using the cash value cancel the plan.)
Just a little tidbit to think about - 17% of American children are overweight. This puts them at a higher risk for health problems that could last their lifetime and affect their insurability.