Young physicians and dentists can sometimes feel as though Disability Income Insurance (DI) is a waste of money. It’s easy to see why something that protects people from long-term illness or injury would seem irrelevant to a person in their 20’s or 30’s, when most people are in the physical prime of their lives. Add that to the fact that most dentists and doctors make annual or monthly payments for a host of other licenses, protections, and debt repayments, and DI insurance can easily fall into a non-essential budget item.
But is Disability Income Insurance really a waste of money when you’re young?
Here are a few reasons why we think it’s not.
FIRST, SOME STATISTICS.
It’s true that you will become more prone to illness and injury as you age. However, not all disability claims are from people in advanced stages of life. Did you know:
A 35-year-old has a 50 percent chance of becoming disabled for a 90-day period or longer before age 65.
About 30 percent of Americans ages 35-65 will suffer a disability lasting at least 90 days during their working careers.
About one in seven people ages 35-65 can expect to become disabled for five years or longer.
In 2016, 41% of disability claims were filed by men and women in their 30’s. [1]
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Most people never plan to get sick or injured, but life is unpredictable, and these facts show that it happens to more of us than we might want to believe.
SECOND, THE COST
Just like life insurance or health insurance, DI insurance will never cost less than when you’re young and healthy. Depending on the options you choose or riders you add to your policy, DI insurance can be quite affordable for a young person who is relatively healthy and practices a healthy lifestyle.
However, consider the cost of not having Disability Income insurance when you need it. If you stopped working today due to an illness or injury, how long could your current assets support you? For most people, the answer is less than 1 year, and that assumes there are no major costs related to the illness or injury.
As many have learned, the inability to provide for the financial needs of your family takes a toll. We tend to think only in terms of protecting our income, but our income is directly connected to some crucial elements of our identity and psychological well-being.
THE RELATIONAL COST
Financial stress is a leading cause of relationship trouble in marriages. When bills pile up, credit cards max out, and savings accounts deplete, relationships can suffer. Guilt and resentment can quickly rise to the surface, especially when children are involved. The more dependents you have, the more important your income is. Your loss of income might require removing your children from their school, moving to a new neighborhood or city (46% of foreclosures on traditional mortgages are directly related to the homeowner’s sudden illness or injury [1]), withdrawing from extracurricular activities, and more. The lifestyle your family had grown accustomed to can disappear in a matter of months when your income is not protected.
The inability to provide financially for your family is a painful experience. No matter how much you might fight it, the fact is that your money comes with deep emotional ties. It’s true for all of us. Your income is not just your primary asset, it’s also a primary source of security. So when it’s gone, you may very well react as if the floor was ripped from beneath you.
THE PSYCHOLOGICAL COST
Loss of income also comes with a loss of pride and purpose. Feelings of meaninglessness and loss this profound can be toxic to your psychological health. A study from 2007 addressed the psychological causes of suicide in England. Yes, this is an old study, but it speaks to the deep-seeded nature within all of us that wants the assurance that everything is going to be okay. The study showed the following:
About one in 150 adults in England had made a suicide attempt in 2007 – 6.7 per 1000 population.
Women were twice as likely as men to have reported an attempted suicide: 8.7 compared with 4.4 per 1000 population.
The prevalence of suicide attempts among men was highest in the 35–54 age group (8.5/1000) and highest among women in the 16–34 group (14.1/1000) followed by the 35–54 age group (9.8/1000).
There were no cases reported by those aged 75 or older by either men or women.
Based on univariate logistic regression analysis, several sociodemographic, socioeconomic and health factors were found to increase the odds of suicide attempts:
Young age
Female gender
Being single or widowed
Divorced or separated
Physical ill-health
Unemployed or economically inactive
In debt
When all of these factors were entered into a multivariable logistic regression model, gender and tenure were the only variables not retained as significant correlates.
The three most significant factors that led to suicide were:
Being unemployed (OR = 5.44, 95% CI 1.97 – 15.81, p = 0.002)
Being economically inactive (OR = 4.82, 95% CI 2.34 – 9.94, p = 0.001)
Having a physical health problem (OR = 4.13, 95% CI 1.44 – 11.86, p < 0.008).
These are the three areas addressed by Disability Income Insurance. Your policy may not be able to immediately get you your job back, but it can certainly keep you economically active as you recover from illness or injury.
THIRD, THE BENEFITS
FINANCIAL BENEFIT
The benefits paid by Disability Income insurance vary depending on the policy and various riders. For example you can decide between a 30, 60, 90, 180, or 365 day elimination period (determines when benefits kick-in), length of your benefit period (whether you want coverage through age 65, 67, or 70), whether you want your policy to make payments toward student loan debts, help you save for retirement, and a host of other options. Regardless of what you choose, your income is your most important asset, and in order to protect it, Disability Income Insurance is a must!
SPIRITUAL BENEFIT
Spirituality has been described as the central philosophy of life which guides people’s conduct, and is the core of individual existence that integrates and transcends the physical, emotional, intellectual, moral-ethical, volitional, and social dimensions [2].
Spirituality is what usually drives us to be positive because we can sense how our work contributes in some way to the overall goodness of life.
A DI insurance policy cannot give you a job or career, but it provides the next best thing: a consistent income. Drawing a consistent income brings financial security. Financial security brings relational peace to the home. Peace in the home provides a stable and happy lifestyle. A stable and happy lifestyle generates a positive psychological state. A positive psychological state is fertile ground for a deep sense of spiritual growth and meaning.
BOTTOM LINE: APPLY FOR DISABILITY INSURANCE
The point of all this is to say that more than just your money is connected to your career. And the sudden loss of income will take a toll on far more than your bank statements or investment portfolio. By protecting your income, you also guard your home, your relationships, and your mental and spiritual well-being.
If you would like to speak to one of our advisors about Disability Income insurance, click the button and we’ll get you started.
[1] https://www.affordableinsuranceprotection.com/disability_facts
[2] (Colliton, 1981; Dombeck & Karl, 1987; Ellerhorst-Ryan, 1985; Fish & Shelly, 1978; Heriot, 1992