Page 48 - Book3E

Advice is what we ask for when we already know the answer but wish we didn't.
—Erica Jong
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forms of life insurance, such as “universal life,” “variable life,” or “whole life” is much more expensive and unnecessary in her view.
No Disability Insurance
According to Ginger Applegarth, writing for MSN Money, the term “the forgotten risk” often refers to disability. People frequently question whether they have enough, too much, or the right kind of life insurance, but they seldom consider how they could survive with no earned income. Applegarth says that at any given age, the odds of becoming disabled are much higher than dying. Every year, 12% of the adult U.S. population suffers a long-term disability. She says one
out of every seven workers will suffer a five-year or longer period of disability before age 65.
Disability is often called a “living death” because it can be catastrophic for you and your family, as well as for friends and co-workers. According to Applegarth, it could create enormous emotional
pressures for the family because your role would change, and you’d have physical needs to be met. There would be significant financial pressures that would compound the emotional pressures.
Suze Orman says if you have a disability policy to go along with your life insurance, you’re still protected. She advises obtaining “own-occupation” coverage, which means you can collect on the policy if you’re not able to perform your normal job. Beware that some policies only provide coverage if you are unable to work at any job. Orman says to steer clear of that trap. You also want a policy that is “guaranteed renewable,” meaning as long as you continue to make your premium payments, your coverage won’t change.
Living Successfully on a Single Income