Disabilities: A Major Threat to Mortgage Foreclosures
Here Are The Facts
by Larry Laskin
So you think that sub prime mortgages were the leading cause of mortgage bankruptcies in this country? Think again.
According to The Council for Disability Awareness, The Long Term Disability Claims Review: 2005, disability continued to be the leading cause of bankruptcies and mortgage foreclosures in the United States, causing nearly 50% of all foreclosures compared to 2% from death. According to the same study, two-thirds of American families live paycheck-to-paycheck, and 70% can’t afford to be without a paycheck for just one month or less.
Most people believe that their biggest asset is their house and/or retirement savings. In fact, their biggest asset is more than likely their ability to work and earn a living. Consider this example of a 30-year old earning $100,000 annually with a 4% increase in income each year. By the time that person reaches age 65, he would have earned $7,659,820. I doubt that any assets that person has accumulated will come close to that number.
Without proper disability insurance coverage, there is a very good chance that the average homeowner could lose his/her house due to a prolonged illness or injury.
I have many people tell me that they cannot afford disability insurance. I say to them that if they think it is difficult to live within your means, try living without it!
California License Number 0C09324
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