Emerging professionals work hard—you apply yourself to everything you do. You thrive by embracing the changes you know life brings. Yet starting your career is only the first step toward achieving financial stability—since all of life’s events cannot be predicted. As you start your future, how do you protect your income?
Accidents and illness happen regardless of your age—and disability insurance is based on your health, age and medical history. At the prime of your life right now is the best time to attain coverage. You can secure coverage while you are healthy for what lies ahead, knowing your financial security is protected.
Statistics show that one in four workers experience disability within their career. In fact, 90% of disabilities are caused by illness rather than accidents. With the average disability claim lasting 31.6 months according to the Council for Disability Awareness, disability insurance can help protect your finances should you suffer an accident or illness that makes you unable to work.
Sufficient coverage depends on the answers to a few questions: What are your (and your family’s) living expenses? For example, what are your fixed costs (like mortgage, rent and utilities) plus variable costs (the new car or laptop that you need or the new roof on your house)? How much savings do you have to cover expenses should you suffer a debilitating sickness or injury?
You want a plan you can keep as your career advances so you can take it with you from one job to the next. By sustaining coverage, you’ll be able to maintain your lifestyle in the event you experience a disability—and help protect your future insurability. Be sure to choose a plan that you can take with you and modify as your life situation evolves.
Affordability is key. Since group medical underwriting spreads risk over pools of people, you’re less likely to experience price fluctuations than you would with individual coverage. What’s more, group plans are priced competitively in accordance with your profession.
Be sure to get the benefits you need. Group disability insurance plans are designed especially with your profession in mind with customized features tailored to your type of work – that you may not be able to find in other plans.
Employer-Provided Disability Insurance
Insurance isn’t one-size-fits-all. While employer coverage is valuable, it may not adequately meet your specific financial obligations — such as your mortgage and other living expenses, children’s educational needs, retirement savings, and aging parent care. It may have a maximum coverage period that leaves you unprotected if your disability lasts longer. Or it may subject you to taxes that can reduce your benefit by as much as 20 to 30 percent. And importantly, employer coverage generally ends when your employment ends.
It’s smart to look closely at what you have and fill in the gaps where they exist. Employers today may be reducing benefits that professionals used to expect. By obtaining your own coverage, you’ll have the peace of mind to pursue your goals with less worry about financial uncertainty.
To find out more about AIA Trust disability insurance options, visit the products page here.