Don’t Underestimate the Risk and Impact of Disability

The risks of being temporarily or permanently disabled and the resulting financial impacts are genuine and often underestimated. Consider…

• The 2000 US Census statistics indicated nearly 20% of the nation’s population had some long-lasting condition or disability. (Source: www.naic.org, February 2007)
• The younger you are, the greater the chance of being disabled vs. dying.
• Almost 30% of people between the ages of 35 and 65 will experience a disability that lasts at least 90 days during their working careers. (Source:www.soundfinancialplan.com)
• Approximately 1 out of 7 people between ages 35–65 can expect to become disabled for five years or longer. (Source: www.soundfinancialplan.com)
• Most people spend 65% – 75% of their income to cover monthly expenses.
• Savings can be quickly wiped out. If you save 10% of your annual income, you could wipe out ten years of your contributions if you were unable to work for a year.
• Approximately 2/3 of initial Social Security Disability claims are denied, and funding can take up to 17 months. (Source: USA Today Online, July 2007)
• A disability brings about 48% of all home foreclosures. (Source: National Underwriter, May 2002)
• Half of all bankruptcies result from illnesses or the inability to pay medical bills. (Source: Washington Post, February 2005)
• Disability benefits from an employer’s plan are usually taxable, while benefits from disability policies purchased by an individual are income tax-free.

NOTE:  This information is only a general description of the available coverages and is not a statement of contract. All coverages are subject to all policy provisions and applicable endorsements. Some coverage may be subject to individual insureds meeting underwriting qualifications and to availability within a state. For further information, contact a Murphy Insurance Agency professional.