Most people believe they have adequate insurance coverage for their home or vehicles, yet many fail to consider the risks associated with a personal disability.  Ask any insurance agent, and they will tell you.  There is a much greater risk of you becoming disabled versus dying from an accident.  Of course, many Americans acquire disability insurance through their employers under a group coverage program, but many never check to see if it really is enough.

Over the last 35 years, medical advances have enabled us to live longer, improving the likelihood that you will survive a critical illness.  Fatalities from heart attack or stroke are down 50% from the 1980’s and today over 70% of people will still be alive five years after experiencing their first heart attack.  The survival rates for many types of cancer have increased dramatically too.  Overall mortality rates have declined; however, our morbidity rates have increased.  Every day the number of people who live with a critical illness is on the rise.   It is important to also mention that American women have the highest prevalence of disability in all age group studies (2019).

So, what should you do?  Start by identifying your potential risks.  Everyone will have a different situation.  The fact is, most people rely heavily on their ability to earn an income, and many live paycheque to paycheque.  If you were faced with a disability, do you have the insurance in place to protect your family and your lifestyle?  No one wants to suffer a severe unrecoverable financial hardship.

Christine’s Tip:

It is important for us all to remember that risk management anticipates, prepares for, and implements a solution for any potential risk to your financial security.  Of course, you will not be able to mitigate everything that life has in store for you; but you can lessen the damage through good insurance, constant planning, saving for your future, and having a good emergency fund to fall back on if needed.