Financial Freedom and How To Protect Yourself From Trouble – Part 3

January 16th, 2008 | Stacey | Financial Independence, Financial Freedom

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Today in our series about financial freedom and practical ways to protect yourself from potential trouble we will discuss what would happen if you became unable to work. How would you replace your current income if you became disabled? Losing your income could definitely compromise your financial independence.

Your ability to earn money is your greatest asset. While your employer may offer short term disability coverage, those checks will end in a few months. If you get hurt on the job, your state has a worker’s compensation fund. If you are unable to work for more than a few months, Social Security offers certain benefits if you cannot hold a job. However, all of these resources are minimal and to become financially free in this situation you need to have a long-term disability insurance policy.

If you are employer does not offer this option, it can be difficult and pricey to get a long-term disability policy and some people don’t meet the underwriting criteria. The best way to get this coverage is through your employer. Another alternative is to see if you can get this coverage through a trade or professional organization. You need a group of at least 10 people to qualify for discounted rates. Get the highest possible coverage with benefits that pay until you are at least 65 years old so you know you will be taken care of in the event of disability.

Tomorrow our series will discuss more ways to maintain financial freedom by protecting yourself from crisis.