What is the greatest threat to your family and your financial well-being? That threat would be that you became disabled and not able to work, if you are the primary breadwinner. If you were to die as the result of a serious illness or accident, you might have life insurance so that your family would have some sort of financial protection. If you didn’t die, and cannot work, are you financially protected?
The consequences can be devastating, since it is a real risk that you could become disabled in your working lifetime. If the main income earner becomes unable to work for whatever reason, most people do not have an adequate protection plan. Unfortunately, many underestimate that risk and feel that they will ever become disabled. Any disability threaten the ability to earn a living. Disability prevents saving for the future, can impose additional cost and can stop income. Savings will cover only a few months of disability, for most people, after that you will certainly have a problem.
You may think the Social Security Disability Insurance Program will cover you, but the word “disability” is difficult to define and hard to qualify for. For those who do receive SSDI, they know it doesn’t not pay enough to maintain the lifestyle you currently have.