This is the question I ask my clients when I suggest they consider a disability insurance policy.  As most Americans can’t truly afford the cost of  long term disability, I already know the answer to the question.  The cold hard reality is that most people who work for a living would suffer extreme financial hardship if they were to become disabled.  Here are a few facts that were recently compiled by Principal Life Insurance:

• In 2007, the median income of households that include any working-age people with disabilities in the U.S. was $38,400 (U.S. Census Bureau, American Community Survey, 2007).
• Over 70% of working Americans do not have enough savings to meet short-term emergencies (National Investment Watch Survey, A.G. Edwards, Inc., 2004).
• Over 50% of the workforce has no private pension coverage and a third have no retirement savings (Social Security Administration, Fact Sheet, 2007).
• 71% of American employees live from paycheck to paycheck (American Payroll Association, “Getting Paid in America” Survey, 2008).
• Only 40% of adult Americans have separate emergency savings funds (National survey commissioned by the Consumer Federation of America (CFA) and carried out by Opinion Research Corporation).
• More than 35% of workers with 401(k) or IRA plans have not though about or don’t know what would happen to their contributions if they were unable to earn an income for a period of time (Council for Disability Awareness, 2007 Disability Survey).

If you ask yourself the question, what would the answer be?  If, like most Americans, your answer is a resounding “Yes,” I would strongly recommend you look into disability insurance by getting some Disability Insurance Quotes.

In recognition of Disability Insurance Awareness Month, Principal Life Insurance published this list:

Myth #1:  I can rely on my savings.

Fact:  Even if you save 10% of your salary, one year of disability could easily wipe out many years of savings.

Myth #2:  Social Security Benefits will take care of me.

Fact:  Just 35% of the 2.8 million workers who applied for Social Security Disability Insurance benefits in 2009 were approved.

Myth #3:  A disability won’t happen to me.  I expect to stay healthy.

Fact:  Every 10 minutes, 490 Americans become disabled.

Myth #4:  I can rely on disability coverage through my employer.

Fact:  Group long-term disability insurance typically covers 60% of gross income, and benefits are usually taxable.  Can you afford more than a 40% pay cut?

Myth #5:  Individual disability insurance costs too much.

Fact:  The average annual cost is typically only 1% – 3% of what you earn.

Don’ t let the consequences of a disability derail your lifestyle and future plans. Purchase a long-term disability insurance policy now.