The Best Father's Day Gift Is Income Protection

June 07, 2012

Disability insurance is often overlooked when purchasing insurance; yet it is essential for families as it protects the family's livelihood and income stream and the bread winner. A short-term disability plan is a smart option because it pays a percentage of the wages while a person is unable to work.

As a father, it is second nature to protect the family. Working hard every day helps ensure they have a roof over their head and food on the table. As Father's Day approaches, take time to celebrate the responsibility and rewards as the family protector. Consider too, how to protect yourself.

"Often, dads get so caught up in purchasing insurance for family, homes and cars; they forget to purchase the right insurance for themselves. While life insurance plans protect the family should the unthinkable happen, many fathers fail to protect against financial loss due to a disability or injury," says Frank Darras, America's top insurance lawyer.

Disability insurance is often overlooked because most workers assume their companies will cover them if they get sick on the job. Others live according to the mantra "It won't happen to me," but it could happen. At age 30, the odds of having a disability before age 65 that lasting three months or longer is around 40%. Even under the Family Medical Leave Act (FMLA), fathers are only protected for up to 12 weeks in a 12-month period. This time off is unpaid unless they use paid vacation or sick leave. Once the 12 weeks is up, the position at work is no longer protected unless the employer offers a short-term disability plan, says Darras.

A short-term disability plan is a smart option because it pays a percentage of the wages while a person is unable to work. On average, it will pay around 60% of monthly earnings and usually run simultaneously with the 12-week limit set by the FMLA. Long-term disability plans cover policyholders even further, should they require more than 12 weeks of recovery, says Darras.

"Paying a little extra for an individual disability policy gives a father the ability to take advantage of the coverage, when it's needed most. Disability insurance coverage provides peace of mind, in the event an illness strikes or some accident occurs and the father is unable to do what he does best," says Darras.

So this Father's Day, talk to a trusted disability insurance advisor and figure out the right type of disability insurance for your individual circumstance and lifestyle. Purchasing disability insurance is essential to protecting a family's income stream, says Darras.