Girlfriends, would you agree that if badly sick or injured, you couldn’t continue to support loved ones and pay the bills? Most would likely experience serious financial hardship if their paychecks stopped for more than a few weeks.

Despite this harsh reality, few workers have disability insurance coverage, which replaces a portion of income if they are unable to work due to illness or accident. While many people typically own life insurance, disability insurance is usually the most overlooked and misunderstood forms of insurance.

Don’t underestimate the financial impact of disability. If a family member suffers a long-term disability, it can be more taxing on your financial situation than if that person died. When a person dies, their income stops but so does their consumption of goods and services. However, when a person becomes disabled, their income stops but their expenses continue. In fact, a disabling injury or illness often results in increased spending on things like medical care and personal care services.

Many workers do not have their own disability insurance because they assume they’re covered through Social Security, workers compensation or employer-provided group plans. While Social Security is a potential source of disability benefits, qualifications are typically stringent and payments tend to be modest.

Without the ability to earn a living, you can’t pay your bills or financially care for your loved ones. While no one wants to think about worst-case situations, disability insurance can protect you against financial hardship and help you build a monetary safety net if you face unexpected illness or injury. A financial advisor can help determine whether your current disability insurance coverage meets your needs and adequately protects your income.

Kahrilynn Phelps & Anita Johnson
Financial Advisors

This information is provided for informational purposes only. The information is intended to be generic in nature and should not be applied or relied upon in any particular situation without the advice of your tax, legal and/or your financial advisor. Neither Ameriprise Financial nor its advisors or representatives provide tax or legal advice. The views expressed may not be suitable for every situation. Consult with qualified tax and legal advisors concerning your own situation.

Financial advisory services and investments available through Ameriprise Financial Services, Inc., Members FINRA and SIPC. © 2007 Ameriprise Finacial, Inc. All rights reserved.