Categorized | Opinion

Do It Yourself Disability Policy

By David Peel
david-peelThe week after your funeral, would your family prefer your insurance agent bring a tuna casserole or a half-million dollar check?
That’s the rhetorical question that tells you how much life insurance matters.  A rule of thumb is to insure yourself for ten times your annual salary.
Family:  How Do I Set Up a “Poor Man’s Disability Policy”?
Most disability policies-even if you have a private one-do not kick in for 60 to 90 days.  That means you could be out of work for several months before any money comes in.  Whether due to a car wreck, a work-related injury, or an accident at home, that is not an ideal situation.  Planning to have expense money for about three months is critical.
Three months’ worth of expenses is hard to save for most folks.  But you can attack it a different way and make at least some progress.  Gather your utility bills from the past few months and look at the various amounts you paid.  Then start paying the highest amount each month, automatically.  After a year or two, you will have built up a credit balance without noticing any tightness in your pocketbook.
What if you’re suddenly injured and have no money to pay the electric bill?  No problem.  Your credit balance is positive, so you can pay nothing for several months and still be in the black.  Sitting in a lightless house isn’t your only option, because you’ve built up four months’ worth of credit.  That is what I call a “poor man’s disability policy.”  And don’t worry-if you sell the house, the utility companies will send your extra money back to you.
Paying utility bills in advance is an easy way to keep the pressure off.  When you receive a bill in the mail saying “Credit Balance-Do Not Pay,” that is very gratifying.  This is a simple little habit that makes life easier.  At the end of the day, you’re still paying the same amount of utility bills, but ahead of time instead of in the moment.  So you have a little bit of breathing room from the accident until your insurance kicks in.
Peel seeks justice for those injured in motorcycle, truck and car accidents, disability and medical malpractice. He often addresses churches, clubs and groups without charge. Peel may be reached through PeelLawFirm.com wherein other articles may be accessed.

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