Could You Afford a Permanent Vacation?

Business owners and employees alike love to take vacations. While time away is normally a great thing, at a certain point you may start thinking about all the things you need to get back to at work. Take a moment and imagine the following situation: What would happen if you were forced to take a permanent vacation? While this may sound appealing at first, the inability to go to work each day and earn a living can put the future of your business and family in jeopardy. In reality, this is exactly what happens when a disability strikes.

While it’s easy to understand that your income stops during a disability, many people don’t realize that certain expenses, like medical care and travel, often increase. Clearly, a long-term disability can have far-reaching implications. Consider these facts:

  • 46.3 percent of Americans cannot cover a $400 emergency1.
  • 68 percent would find it very or somewhat difficult to meet their current financial obligations if their next paycheck was delayed for one week2.

It is not just the short-term impact of losing your next paycheck that’s the problem. One in eight American workers will be disabled for five years or more during their working careers3. Often, people think workers compensation will cover this loss. But the reality is it only helps cover employees’ economic losses due to job-related situations. Keep in mind that approximately 90 percent of disabilities are caused by illness, rather than accidents4. Consider what the total cost of losing your income over a lifetime could look like:

Think about the value of your home or auto in comparison to the potential value of your lifetime income. While we don’t think twice about protecting these assets against loss, most people don’t consider protecting their ability to earn an income. Owning a disability income insurance policy should not be an afterthought. It should be treated as a necessity, just like the other coverages you have to protect your assets. Disability insurance can provide an income stream to help pay your bills in the event a sickness or injury prevents you from working.

Protect your greatest financial asset: your ability to work and earn a living. Talk to your Federated Marketing representative about how Federated’s Income Shield® can help protect you and your family from the catastrophic effects of a disability.

1U.S. Federal Reserve, Report on the Economic Well-Being of U.S. Households in 2015.
2Council for Disability Awareness,; “Disability Statistics” July 2013.
4CDA 2013 Long Term Disability Claims Review.

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Could You Afford a Permanent Vacation? (pdf)

This article is for general information and risk prevention recommendations only and should not be considered legal, coverage, financial, tax, or medical advice. The information may be subject to regulations and restrictions in your state. There is no guarantee following these recommendations will help reduce or eliminate losses. The information is accurate as of its publication date and is subject to change. Qualified counsel should be sought regarding questions specific to your circumstances. All rights reserved.

Published Date:May 14, 2019

Categories: It's Your Life