4 mistakes you make when it comes to protecting your Paycheck

Determine if you need to protect your check-really, your ability to earn income with disability insurance is easy enough. If you have a job and you depend on your paycheck to meet your monthly bills and financial obligations, you need them.

In essence, disability insurance is if you suffer an injury or illness and can not work for a long period of time. It will replace a portion of your income until you are able to return to work again.

But most working people do not have this basic protection for the long term, and often it is because they assume they do not need. Here are four common mistakes that people make when it comes to understanding disability insurance and its importance in protecting your ability to earn an income

Error # 1 :. Do you think the odds are low that you 'D never need because you do not work in a dangerous profession, so you go on the cover
reality :. The truth is, one in four now 20 become disabled at some point in their career, according to the administration of social security (7 February 2013). It is true that people in occupations like agriculture, implementation and construction of the right face greater risks, the chances of suffering a long-term disability are high for all workers because disease, no accidents account for 0% of disabilities that prevent working people (Council for disability awareness "long-term disability claims review, 2014)

mistake # 2: .. you think the government will provide assistance if something happens
reality it is possible, but most of the time as it will not or will not be for long, long time. According to the National Safety Council, 73% of long-term disabilities are the result of an injury or illness that is not work-related, and therefore would not be eligible for compensation programs based state on workers.

And if you were hoping to rely on disability social security benefits, know that about 45% of those who apply are initially denied, and those who are approved receive an average of about 1100 $ per month. In addition, they often have to wait several years before these benefits start. Could you wait several years while receiving no pay and live and $ 1,100 per month

Error # 3: Think you could count on your savings until you could return to work.
reality most people overestimate the resources available to cover bills and expenses if they suffered from an illness or injury that prevented them from earning a paycheck. According life happens Survey on Disability in 2012, half of American workers say they could not do a month before they feel the pinch financially.3 Keep in mind that disabling illnesses or injuries often last for months or even years.

error # 4 :. you think you have a disability coverage through work
reality most people do not: According to the US Department of Labor, more than 70% of employers not offer long-term disability coverage. And short-term disability insurance or partial coverage would not be enough to meet your current and future financial obligations if you were unable to work for a long period of time. So talk to your benefits manager at work to see if you have coverage and what type it is

The bottom line :. Do not let these errors trigger your future financial well-being is. Sitting with an insurance agent is the best way to work through the questions you might have, and they can help you find the coverage you need to fit your budget with any obligation. You can also get a working idea of ​​what you might need before you sit down with someone using this calculator needs disability insurance.