Your doctors get paid, but who pays you?
As a responsible person, you probably have health insurance to cover you for major medical illnesses or accidents, doctors fees, hospital bills, medications cost. But will your medical insurance cover for income lost during your illness? If you do own health insurance, that means you acknowledge the fact that you may get hurt or sick. You may receive some sick pay from your employer, but do you know exactly how much? Or, if you are self employed – there is no sick pay. Then, who will reimburse you for the income you lose during your treatment and recovery from such a sickness or injury?
Did you know that you can add income loss protection, that will pay you for lost wages?
Yes, your income is your most valuable asset; you use your paycheck to buy all your other assets: your home, cars, pay bills, family vacations, children’s education. But what are you going to do when your income stops due to an injury or illness? Your doctors will be paid by your medical insurance, but you will still have to struggle with your deductibles, co-payments, co-insurance and other expenses not covered under your insurance policy. Your spouse may be able to help and support through this period of time, but keep in mind that your spouse will also need to take some time off to care for you, or find extra funds to pay for your care. Why put so much strain on your family’s financial situation, when you can insure yourself against income loss and get a monthly check from your insurance company if you can’t work?
Cover your M.U.G. !
To add income loss insurance to your protection, you first need to decide how much benefit you will need every month for your fixed expenses: your M.U.G. – Mortgage or rent, Utilities and Groceries. Then think of other obligations you may have like family expenses, children’s education, etc.
Next thing to figure is: will you need income loss protection for short-term, long-term or both? Short-term income insurance will protect for 0-3 months, and long-term income protection will usually cover from 3 months until 12, 24, 60 month of continuous illness, or even to retirement age (65, 67 or 70) if your injury or illness will prevent you from working again in your occupation. As you would expect, the longer the benefit period, the higher the premium will be. One way to lower your premium is to wait for a longer period of time before benefits start. Some employers provide a certain amount of sick days; you may also have some emergency funds you can use for the first couple of months, therefore you’d better protect yourself for those major medical issues that can keep you from working for a longer period of time. Typically most income loss insurance policies purchased will start paying a benefit after 60 or 90 days of sickness, and will continue paying for 24-60 months giving you enough time to recover, or to find and train for a new job based on your abilities.
Income Loss Insurance Is Very Affordable
For simplicity’s sake, let’s just say that you need $1,000 per month if you lose income due to an illness or accident. In two years, that $24,000 of benefit. For many, that’s enough to help them keep their home from foreclosure and help pay for some daily expenses. Let’s see how much this would cost:
– A female nurse, age 28 in Florida, would pay $18.98 per month for total potential benefit of $24,000 *
– A male carpenter, age 35 in South Carolina, pays $21.48 per month, for the same coverage.*
– A female dentist, age 40 in Louisiana, will pay $24.80 per month for this benefit.*
– A male real estate agent, age 55 in Wisconsin, will have a premium of $33.45 per month.*
*rates are for non-tobacco users. Tobacco rates are normally 25% higher. Rates provided through Assurity and are valid as of 5/2/2013. Many other carriers are available to quote.
Once you’re covered, rates are locked in
Of course, if you need more monthly benefit or need a payout over a longer period, rates will adjust accordingly. The greatest thing about income loss insurance, rates will not change as you age, just like your life insurance! That’s why it is recommended to lock in your rate now, when you’re younger and healthier, because later on you may have to pay higher premiums or may not be able to qualify if you’re already sick and can’t work.
Since May is “Paycheck Protection Awareness Month”, now would be a great time to protect your home and family against wages lost due to illness or accidents.
Ask for a free quote: IncomeLossProtection@LifeGuy.com or call 877-LIFE-GUY