Making Income Protection Part Of Financial Wellness

Disabled man with cruches

Are you financially well? Most people would answer yes if their take home pay was adequate and their current net worth was six figures or more. But financial wellness is much more than that. There are other factors besides income that are important too.

According to the CFPB, financial well-being means “having financial security and financial freedom of choice, in the present and in the future”. This includes the financial freedom to make the choices that allow you to enjoy life, having control over day-to-day, month-to-month finances and having the capacity to absorb a financial shock. For example, replacing your income if your ability to work becomes compromised by injury or illness is an important component of financial wellness as well.

May is Disability Insurance Awareness Month (DIAM)

A crippling illness or injury can place your career and bread-winning ability into jeopardy. These occurrences can manifest suddenly and when you least expect it.

Every May, The Council For Disability Awareness joins teams with others in the insurance arena to raise awareness of the need for disability insurance to protect income. According to The Council, millions of American workers are bearing a major risk: A total lack of disability insurance. Reasons for this lack of coverage are several, including the lack of emergency savings, fewer employers offering insurance benefits, burgeoning medical costs, and more people working as entrepreneurs or independent contractors.

Most people think that disability won’t happen to them, or worse, don’t even think about it at all. Consider the case of Dore Bakouris, a new mom who suffered from a stroke and lost her vision when she was just 27 years old. Fortunately, she had disability insurance that not only replaced her income, but also helped ease the financial stress caused by the critical illness.  

Facts About Long-Term Disability

Disability among working-aged individuals in the U.S. is a very big concern and much more common than one might initially guess. According to U.S. Social Security Administration, a 20-year-old worker has a greater than 25% chance of becoming disabled and unable to work before reaching retirement age decades into the future.

Older Americans are significantly more likely than younger Americans to have a disability, according to the American Community Survey. About a quarter (25.4%) of Americans aged 65 to 74 reported living with a disability. However, those aged 35 to 64 accounted for more disabled Americans – nearly 16 million in 2015 – than any other age group.

Financial wellness not only includes your current salary or how much you have in the bank. It also concerns itself with one’s ability to bounce back from financial hardships. Protecting your major source of income should you become unable to work needs to be an important component of financial planning. Disability insurance is the answer to protecting your regularly earned income from a job or career.

Are You A Contractor or an Employee: It Makes A Difference!

Are you a contractor or an employee? It does make a difference and each of these ways of making a living has its benefits and downfalls. As far as insurance benefits go, many employees, especially those with large companies, are offered health, death and disability insurance as part of their total compensation package.

Most contractors, such as real estate agents, are not. Instead, contractors, entrepreneurs or otherwise self-employed individuals must purchase insurance themselves. In some cases, they do without one or more of these insurances because of the perceived cost or worse yet, a lack of awareness. Don’t be caught unaware.

1099 Advantage and Our Approach on Disability Insurance

Rosenbaum Financial is a pioneer in offering disability and other insurance to real estate agents and other independent contractors. Our 1099 Advantage Plan is designed specifically to create coverage for independent agents in the real estate and other industries. The 1099 Advantage Plan provides needed coverage for many who, until now, had no real opportunity to obtain quality insurance.

Rosenbaum’s 1099 Advantage Plan offers long- and short-term disability insurance as well as life insurance, wealth preservation, accident coverage, and other benefits. It can fill the gap uncovered in your financial wellness evaluation.

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