Global Financial Services, L.L.C.

Your most important asset is not your home, your car, your jewelry or other possessions. It’s your ability to earn a living. Think about it: All of your plans for the future—from buying a home to putting your kids through college to building a retirement nest egg—are based on the assumption you will continue to earn a paycheck until you retire. But what would happen if those paychecks stopped? That’s where disability insurance comes in. It provides an income to you and your family if you are unable to work because of illness or injury.

Your income is typically your largest asset. Think about how much you earn in a year and what that would be over a lifetime. The financial consequences of a lengthy disability could literally cost you millions. A 25-year-old worker who makes $50,000 a year and suffers a permanent disability could lose $3.8 million in future earnings. You don’t hesitate to insure your home, car and other valuable possessions, so why wouldn't you insure something that is much more valuable than all those things?

If you’re still not convinced that your income is worth insuring, think about how long you’d last without your paycheck before it would be difficult to pay for everyday expenses. The LIFE Foundation conducted a study that found that 70 percent of working Americans couldn’t make it one month before financial difficulties would set in. More than one in four Americans wouldn’t make it a week. In the event of a disabling illness or injury—and the odds are much greater than you might realize—disability insurance provides you and your family with a source of replacement income to help make ends meet until you’re able to return to work.

Income Protection

Why is Disability Insurance so important? Consider these facts:

• At age 32, the chance of being disabled for 90 days is 6.5 times greater than the chance of death. (Source: National Association of Insurance Commissioners)
• The likelihood of being disabled for more than three months is greater than dying in any given year. (Source: Society of Actuaries)
• More than 51 million Americans – 18 percent of the population – are classified as disabled (Source: US Census Bureau, November 2008)
• Almost one-third of Americans entering the workforce today – three out of 10 – will become disabled before they retire. (Source: Social Security Administration, 2007)
• Seventy-five percent of disabilities are caused by an illness rather than an accident. (Source: Commissioner’s Disability Table)
• Seventy percent of American workers in the private sector have no long-term disability protection. (Source: Social Security Administration, 2007)
• A Harvard University report reveals that 62 percent of all personal bankruptcies filed in the U.S. in 2007 were due to the inability to pay for medical expenses. (The American Journal of Medicine, June 4, 2009)
• Every year, 350,000 personal bankruptcies are attributed to injuries and unexpected illnesses.(Source: “Illness and Injury as Contributors to Bankruptcy,” Health Affairs, 2005)
• In the first year following paraplegia, living expenses average $259,531 per person. (Source: National SCI Statistical Center, 2005)
• Only a small fraction – 10 percent – of disabling accidents and illnesses are work related. The other 90 percent are not, which means workers’ compensation doesn’t cover them. (Source: National Safety Council, 2008)
• The average monthly benefit paid by Social Security Disability Insurance (SSDI) is $1,004 a month. (Source: Social Security Administration, 2008)
• Stroke is the leading cause of serious, long-term disability in the United States. From 1995 to 2005, the stroke death rate fell 29.7 percent and the actual number of stroke deaths declined 13.5 percent. (Source: StrokeCenter.org)
• In the past hour, almost 3,000 Americans became disabled. That’s 49 disabilities every minute.(Source: National Safety Council, “Injury Facts 2008 Ed.”)