Patrick L Srebnick : Northwestern Mutual - Why Now is the Time for Disability Insurance : Article: Why Now is the Time for Disability Insurance

Why Now is the Time for Disability Insurance

The recent financial turmoil in the economy make this an excellent time to review just what funds you would have available to meet your financial obligations if your income stopped and life went on.

There are two basic threats to your ability to earn money and meet your financial goals: death, of course, and disability. You are far more likely to become sick or hurt and unable to work during your working years, than you are to die. So it makes perfect sense to protect your income with disability income insurance.

This type of protection is appropriate for anyone who works for an income, self-supporting singles without other people or sizable assets to rely upon, married couples and families.

Business owners have even more reasons for disability insurance protection. It is not only you and your loved ones you protect, but your employees and all those who depend on your business continuing, even if you can’t.

An accident or long-term injury or illness can occur at any time, preventing a person from working for months or years. A study for the Life and Health Insurance Foundation for Education (LIFE) puts the probability that a worker between the ages of 25 to 65 will suffer an accident or disability that keeps them out off the job for at least 90 days at 27% for men and 34% for women.*

A disability, even one lasting only several months, can have a devastating impact on your finances. Expenses for a mortgage/rent, groceries and other basic necessities continue and may even rise if you cannot work. It could also preclude you from being able to purchase life insurance.

What are the Odds?
Do you know what your odds are of becoming disabled? The younger you are, the more years you are at risk of being disabled. For that reason, here are some figures at specific ages that may surprise you.

Odds of Becoming Disabled Before Reaching Age 65**

Age	Male	Female
25	20%	32%
35	19%	29%
45	18%	24%
55	13%	15%

Is There a Gap In Your Plan?
Disability income insurance can replace a good part of your paycheck if you are unable to work because of an accident or illness, such as heart attack or cancer. Some employers offer short-term and possibly long-term group disability coverage. If your employer does not provide this type of coverage, the amount your employer provides is not sufficient or you are self-employed, you need to consider purchasing an individual policy.

While there are many factors to think through with regard to your short- and long-term financial needs and goals, talking with a financial representative can help. A trusted representative can help you decide what kind of insurance is best for you and how much you may need in order to achieve financial security in the long run.

*The Real Risk of Disability in the United States conducted by Milliman, Inc. for the Life and Health Insurance Foundation for Education, May, 2007.

**What are the Odds Calculator, www.nmfn.com | Learning Center | Calculators

Depending on the products and/or services being recommended or considered, refer to the appropriate disclosure brochure for important information on the Northwestern Mutual Wealth Management Company, its services, fees and conflicts of interest before investing or engaging in financial planning services. To obtain a copy of one or more of these brochures, contact your representative.

Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM), and its subsidiaries and affiliates. Patrick L Srebnick is a Representative of Northwestern Mutual Wealth Management Company®, Milwaukee, WI (WMC), a wholly-owned company of NM and limited purpose federal savings bank. WMC is not a broker-dealer or insurance company. All WMC products and services are offered only by properly credentialed Representatives who operate from agency offices of WMC. Representative is an Insurance Agent of NM (life insurance, annuities and disability income insurance), and Northwestern Long Term Care Insurance Company (NLTC), a subsidiary of NM (long-term care insurance), and a Registered Representative of Northwestern Mutual Investment Services, LLC (NMIS), 1600 Division St Ste 400, Nashville, TN 37203-2747, 615-742-8700, a wholly-owned company of NM, registered investment adviser, broker-dealer and member FINRA (www.finra.org) and SIPC (www.sipc.org). Representative may also be an Investment Adviser Representative of NMIS. NM and The Pruett Financial Group are not broker-dealers, registered investment advisers or federal savings banks. There may be instances when this agent represents insurance companies in addition to NM or its affiliates.

Investment products are not insured by the FDIC, are not deposits or other obligations of, or guaranteed by, NMWMC or its affiliates and are subject to investment risks, including possible loss of the principal amount invested.

The products and services referenced are offered and sold only by appropriately appointed and licensed entities and Network Representatives. Network Representatives and their staff might not represent all entities shown or provide all the services discussed on this Web site. Not all products and services are available in all states.

Patrick L Srebnick is primarily licensed in Tennessee and may be licensed in other states.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP, Certified Financial Planner and CFP (with flame logo)®, which it awards to individuals who successfully complete initial and ongoing certification requirements.