Disability Divide-Misconceptions That could be costly

Disability Divide-Misconceptions That could be costly -Many people get their benefits through work and consider them as an important part of their total compensation package. Last August, the Council for Disability Awareness (CDA) interviewed over 500 HR professionals whose job is to help employees understand, navigate and take advantage of these benefits. This may he published study " Disability Divide: Employer study ;" Here are some ideas shared HR professionals:

• 73% said they thought that employees of their company considered "the ability to earn income "as their most valuable financial resource ... more valuable than their retirement savings, homes or medical insurance. Yet only 26% think that their employees considered "very important" to prepare for the failure , and only 26% believe that their company's employees were prepared to financially survive a disease or a related loss of income injury.
• In a previous research project when CDA surveyed more than 1,000 employees, the employees themselves had similar responses. They overwhelmingly said "their ability to earn income" was their most valuable resource, but when asked their level of agreement with various statements about their attitude about the preparation in case of disability, the they were most likely to agree with was: "I never really thought"
• most HR experts believed employees should plan on disability. at a young age, but acknowledged the fact that most do not provide until they are in their 40s, or 50 years, or never. This impression is confirmed by the facts: about 100 million members of the US civilian personnel have no private disability insurance
• Finally, most professional human resources and. employees significantly underestimated the risk of suffering a disability during their working years

Here are some facts :. staff Disability Quotient (PDQ) calculator: a man aged 35 , average height and weight, office tasks, average life style, non-smoking no further health history faces a risk of 13% of long-term disability before retirement . F or a 35 year old woman with a similar risk profile, chances are about 18% she will experience long-term disability before retirement. During the investigation, when the ADC asked the employees and HR professionals what they thought the chances were of disability, most respondents either 1% or 2% -. Much lower than the realityDu income Only possible Quotient (QIS) calculator those same 35 years, if winning $ 50,000 per year today, is likely to win something like 2.4 $ million before end career mostly an almost incomprehensible sum.If the type of 35 years had $ 100,000 in cash, they would go to the ends of the earth to avoid losing. Yet, given their earning potential $ 2.4 million, with a risk of loss in the range 13-18%, most employees say "I've never really thought about protecting it." Something wrong with this picture Some takeaways: everyone who needs their income to survive financially, which is almost everyone who works for a living , needs to protect that income. the risk of loss and the value of potential loss are simply too high to ignore at any age.Historically, it was considered less important for employees to protect their income as they approach retirement because many had defined benefit pensions, most had savings, dependent children were long gone, and the houses have been paid. for many in their 50's and even 60 years today, the current result is very important because they are struggling to save enough for retirement when house prices and many investment portfolios have stagnated, many are still supporting children and some grandchildren are even supporting and parents. Thus, income protection remains important.For younger workers, many will never see a pension plan, future rights may not be as robust, they are likely to share the cost of their benefits and make decisions about which benefits are most important, and most change jobs relatively frequently. The bottom line is income for this group will be more important than it has ever been, and take personal responsibility for income protection is obviously important Bottom line :.

• The risk of disability is still too high to ignore, regardless of your risk profile. Low risk does not mean risk.
• If you need your income, and most people do, you must protect your income.
• The time to protect your income is now; once disability occurs, there is little planning can be done.
• For younger employees, it is easier to get disability insurance, and the cost will be lower when you are younger. Make planning income protection at a young age not only protects the largest amount of revenue for the longest period of time, it also protects its insurability. Just because you're healthy and can benefit from the income protection insurance today does not mean you'll be able to do tomorrow. There is always a risk that future circumstances, health and moreover, it can be difficult to find an adequate income protection.