Guardian Disability Insurance Brokerage

Am I Too Young To Buy Disability Insurance?
If Not Now, When?
by Anthony Delvecchio

"I am 28 years old, I have no health issues and I have no spouse or children, why do I need to buy disability insurance?" I have been asked this question many times. In the marketplace I work in, medical and dental residents, I get asked this question frequently. My answer is always the same, “because I know today you qualify for it, you may not tomorrow”. Income protection, known as disability income insurance, is designed to protect your income IF a serious illness or injury were to prevent you from working, not when or after an injury or illness happens. The fact that you are young, and you have no medical issues makes today the best time to purchase a disability insurance policy. You can even lock in your medical insurability for future earnings by adding a rider. (a rider known as a “future increase option or future purchase option that allows you to increase your individual benefits without medical underwriting, only financial underwriting*).

Let’s take a quick look at some statistics that may provide some clarity to the questions “am I too young to buy”.

1. Just over 1 in 4 of today’s 20 year olds will become disabled before they retire.(Social Security Fact Sheet, March 2011)

2. About 12% of the total population is disabled, more than 50% of those disabled Americans are in their working years 18-64 (US Census Bureau)

3. In December 2010, there were over 2.5 million disabled workers in their 20’s-40’s. Those are prime earning years. (Social Security Administration, Disabled Worker Beneficiary Statistics).

These numbers are scary, and truly show that a disability is a real concern to today’s young work force.

I am lucky that I work mainly in the medical field and that majority of the prospects I speak to are aware of and are told to purchase this type of insurance. Unfortunately outside of the residency programs, most young adults are unaware of the potential stress a disability could cause or that this product EVEN exists. Everyone who has a car has car insurance. If you own a home you have homeowners insurance. The one thing that allows you to make these purchases is left uninsured. It is in my opinion backwards. This should be a mandatory insurance. Did you know that medical problems contributed to HALF of all home foreclosures in 2006? (GET SICK, GET OUT: THE MEDICAL CAUSES OF HOME MORTGAGE FORECLOSURES; Christopher Tarver Robertson, Richard Egelhof, & Michael Hoke; August 8, 2008)

I truly believe if today’s workforce knew these numbers more individuals would own a disability insurance policy. Do not become a statistic. Understand your most valuable asset is your ability to earn an income. Talk to a disability insurance specialist about purchasing an individual disability insurance policy BEFORE you become uninsurable. You are not too young to protect your future.