Backing up your income the impact of a disability is

Backing up your income the impact of a disability is -
Decades, the traditional family unit is composed of a husband and wife with 2.5 children. Most women were stay at home mother, able to call on members of the extended family in case of illness or injury has affected their ability to care for their children.
But these days, there is more of a "traditional" family unit (and, by extension, an extensive support network), the following figures show:

• in 2010, 43.6% of all residents of the United States aged 18 and over were single-more than half of all women-seniors comprised 16.5% of all unmarried and single people 18+.
• 45% of households in the country were held by men or single women, while many single parents living with their children in 2010 reached 11.7 million. (Almost a third of grandparents raising their grandchildren.)
• There were 6.5 million unmarried-partner households that included 581.300 same-sex couples.
• Finally, the number of people living alone totaled $ 31.4 million in 2010, comprising 27% of all households against 17% in 1970.

What this mean for you? Well, if you fall into any of the categories above, a single parent or grandparent raising a child, an adult living alone, or an unmarried couple you need to do a bit of thinking "worst case scenario ". Specifically: If you have an illness or injury resulting in a disability (temporary or permanent), what kind of impact it will have not only on your finances but also to anyone who depends on you
during disability insurance awareness Month? , Ask about the reality of the impact of disability can have on your budget and your life.

disability coverage facts
If you think you have your bases covered with health insurance, workers' compensation or social security, the following information may change your mind.

• Although health insurance will cover medical costs, it will not provide income to cover your needs if you are unable to work, even for a short period of time.
• the workers' compensation coverage applies only if the disability is only occurs in about 5% of cases related to the employment, according to the Council for Disability Awareness. (If you play the odds, you might want to reconsider, since 30% of those entering the workforce today will be disabled for three months or more during their careers, the average request long term disability lasts 31.2 months.)
• Although social security provides coverage, eligibility for benefits can be difficult (60% are first denied) and, just over $ 1,100 per month, the average monthly payment is barely above the poverty level.

In the meantime, the bills continue to rise and your financial situation becomes even more precarious. According to a study, over 62% of bankruptcies in 07 were due to medical issues-a significant increase over 01 of 46.2%.
Fortunately, you have several options to help protect yourself and those that depends on you. coverage (short-term disability insurance, long term disability insurance, or both) sponsored by the employer can replace a significant percentage of your income, perhaps up to 40% to 60% of your income before taxes. (In some states, employees can also buy short-term additional disability coverage on their own, paid through payroll deductions.)
If you're self-employed or if you want a thread stronger security, individual disability insurance policy is the best choice. Start by calculating the amount of income you need to maintain your current standard of living in case you are unable to work. Next, look at your situation in life and work. Do you have children, a spouse or an elderly parent who depends on you for support? Is there a cap on the benefits offered by your employer and you get close to this level? Finally, your standard of living has increased or you have taken a significant amount of new debt?
Once you have a clearer picture of your "worst case" schedule a meeting with your insurance advisor to review your disability insurance options: by your employer, a professional organization or on your own. This will help you make the best decision for your budget, your future and those who are part of your "family unit". For more information on people with disabilities, visit www.protectyourpaycheck.org.