What Is Your Most Valuable Asset?

In this article, we’re NOT going to discuss taxes. No; with the filing deadline recently complete, instead we are going to focus on your absolutely most valuable asset.

When you think of your “Most Valuable Asset” what is the first item that comes to mind?

Your Car?

Your Retirement Account?

Your Home?

Now granted all these can be precious possessions, but I doubt they are your most valuable asset.

Think about it: What gives you the ability to own these in the first place (and without it you could lose them very quickly)?

How about…your ability to WORK and earn a PAYCHECK?

What would happen if that suddenly ENDED TODAY and you had no income?

Most Americans are not prepared for a long-term disability because they think it will NEVER happen to them or they believe they are already covered. There is also the common belief that Social Security or their employer will pay them if they get hurt.

Sometimes your employer’s Worker’s Compensation and/or Social Security disability coverage WILL pay a portion of your income for a long-term disability. But what happens when you get sick or hurt off the job and DON’T qualify for Social Security?

Surveys show that the average American worker is only a month or two from bankruptcy, and it takes almost six months for Social Security to kick-in (that is, if you qualify; over 60% are turned down). As a nation, we spend like there is no tomorrow, put back little, if any, savings, and are not prepared for unexpected bumps in the road; let alone potential catastrophes like a long-term disability.

This is NOT meant to scare you, but here are the sobering facts about the risks of a long-term disability:

• In the last 10 minutes, 498 Americans became disabled.
  - National Safety Council^®, Injury Facts^® 2008 Ed.
• There is a death caused by a motor vehicle crash every 12 minutes; there is a disabling injury every 13 seconds.
  - National Safety Council^®, Injury Facts^® 2008 Ed.
• Over 85% of disabling accidents and illnesses are not work related, and therefore not covered by workers' compensation.
  - National Safety Council^®, Injury Facts^® 2008 Ed.
• 51.2 million Americans have some level of disability. They represent 18% of the population.
  - U.S. Census Bureau, July, 2006.
• The average duration of a long-term disability is 30 months.
  - JHA Disability Fact Book, 2006
• Nearly 1 in 5 Americans will become disabled for 1 year or more before the age of 65.
  - Life and Health Insurance Foundation for Education. November 2005
• Less than half - 39% - of the 2.1 million workers who applied for Social Security Disability Insurance (SSDI) benefits in 2005 were approved.
  - Social Security Administration, Office of Disability and Income Security Programs
• The average monthly SSDI benefit is only $1,004. Social Security Administration, Fact Sheet 2008

At PRO-TAX, we help thousands of families with their taxes every year, but since the effects of a long-term disability are so devastating and most Americans do NOT have disability protection (other than Social Security), we thought we should bring this important message to your attention.

We recommend that you set aside some time to determine exactly what kind and how much disability coverage you have, and through what sources. This is vital information and you DON’T want to find out you have little or no coverage AFTER you’re hurt or sick.

There are many different types of disability coverage ranging from “accident only” to top-of-the-line plans which cover you for life if you cannot perform your specific occupation. If you have any questions about the type of coverage you have please contact your employer, insurance agent, or call PRO-TAX at 1-800-809-2829 x4480. As an added benefit to PRO-TAX customers, we have a Certified Financial Planner on staff to answer your insurance questions at NO CHARGE.

• More Articles