Very few people enjoy sitting around thinking about worst case scenarios. But when it comes to planning for business and life, all things must be considered. Even the possibility that bad things can happen to your best people.
While this may not sound like a fun conversation, it’s one you need to have. And if involving pastries and coffee will make it slightly less painful, bring it on.
No estate or financial plan should be viewed as complete without considering the risks of disability. As much as no one likes to think about it, these things do happen. Ask around. I’ll bet you know plenty of people with stories about how individuals and businesses had to deal with just such circumstances. And how prepared or unprepared they were to do so.
What’s the issue?
When people are healthy and working, they are generally able to acquire income and savings that exceed their expenses. But a disability caused by a sickness or injury can change all of that. Income will fall and expenses will rise, often at an alarming speed. Without planning, the expenses of a disability can quickly exhaust a lifetime of savings— and create substantial debt.
Social Security should kick in after six months of continuous and total disability, but for most people, these payments won’t come close to filling the gap between shrinking income and increasing expenses.
Many feel pressured to sell, vehicles, assets, and even the family home in an attempt to counteract the substantial debt created by a long-term disability, but it’s rarely an effective tactic. In fact, this painful process is often referred to as “the living death.”
Is there a way to prepare?
Yes. And it begins with thoughtful, comprehensive planning.
Disability insurance should be the cornerstone of this plan. Just as life insurance protects a family in the event of death, disability income insurance protects the insured and his or her family in the case of disability.
If you’re not sure how to get started, we can help you navigate this difficult, no-fun, but critically necessary item for yourself and your employees.
Don’t make the mistake of thinking this can’t happen in your business, your community, or your family. You may never need to use your disability policy, but having one in place will give you the security of knowing those you love most will be taken care of— and allow you to go out and life to the fullest.
At Raffa Financial, we identify and manage complex employee benefits challenges for businesses all over the greater Maryland, Virginia and Washington. Let us provide long-lasting benefits strategies to take care of you, your business and your employees.
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