Preferred Financial Group

"We listen, we educate, then we perform like no one else in the industry."

Examples

 

Scenario:

  • Single, age 23, earning $40,000 per year
  • No dependents
  • Monthly living expenses = $2,000
  • Current savings = $4,000
  • Renting an apartment with a roommate

 

Reasons For Coverage Now:

  • Lock in a low premium and future insurability at a young age— Premiums for disability insurance will never be more affordable that they are today. Purchasing early guarantees that future events will not keep you from qualifying for coverage.

 

Reasons To Consider Coverage:

  • Limited savings— Without significant savings, the family’s living expenses would not be covered for an extended period of time, causing hardship.
  • Income replacement— Proceeds from a disability insurance policy can replace all or a portion of the wage-earner’s income lost due to disability.

 

Not Currently Applicable To The Scenario:

  • Peace of mind— Knowing that your family will not have to suffer financially from a loss of income caused by a disability that prevents you from performing your job and losing your income.
  • Sole wage earner in the household— The non-disabled spouse might be able to seek employment, but it is likely to take some time before employment actually begins, and the salary might not be sufficient to cover the family’s living expenses.
  • Complement to existing disability benefit plans— There are various public and private disability plans for which you might qualify, but they may not be sufficient to cover your financial exposure due to a disability.

 

Overview: This individual should not be overly concerned about the potential financial consequences associated with an unexpected disability for the following reasons:

  • At the current age of 23, a single person is highly unlikely to become disabled in the not- too-distant future.
  • Current net worth is probably not much greater than the $4,000 savings.  Because of this, the potential for loss given a worst case scenario is minimal.

Being aware of any group disability coverage offered by the employer would be beneficial, especially if such coverage is paid for by the employer, or offered to employees at a reduced cost through a group plan.