EZDIQuotes

Disability Income Insurance: Protecting an Education

Posted on: Wednesday, August 26th, 2009

Most of us who have children begin to put away money for college following their birth. We hope to build a substantial enough nest egg that they can go away to school and study what they want without the burden of student loans on their shoulders when they graduate. But it’s amazing how quickly those hard earned savings can disappear if you do not have the proper tools in place to protect yourself and your family.

Consider, for example, those who have opted not to purchase private disability insurance or take part in company-provided disability insurance plans. Essentially this makes you vulnerable to any possible illness or injury that may take you out of work. And how quickly would most of us go under without even our next paycheck?

An illness that requires a hospital stay, ongoing treatments, or renders someone unable to do their job in the short term or the long term can financially bury a family. An accident that results in an absence or permanent separation from work can mean a complete financial – as well as personal – transformation. How many of us have the resources available to us to be able to survive such an event in our lives?

What generally happens with those who do not have disability insurance is that once all vacation, personal, and sick time is taken from work, they turn to their savings accounts, investments, retirement funds, and even their children’s education savings. These are desperate times and they call for desperate measures. A child’s education could easily be sacrificed to save a family from financial ruin.

With disability insurance in place, however, parents do not have to turn to such extreme measures. Their policy payouts will account for their missing income and keep their family afloat during this period of time so that savings, the family home, and investments are secure.

Related posts:

1. Determining the Amount of Adequate Disability Insurance
2. Disability Income Insurance & Significant Debt
3. Disability Insurance After a Car Accident, Part 2