There are MANY websites (and people) out there that talk insurance. Some know what they are talking about…unfortunately many do not.
The below announcement (in bold) is copied from www.lifehealthpro.com/ which I found from LIMRA.
Disability or Income Replacement insurance is very important because if you become sick or injured, it can replace some or most of your income so you can continue to pay the rent/mortgage, put food on the table and it helps keep you from nose diving into bankruptcy.
Many people think that having Health Insurance will keep people out of bankruptcy but they are trying to treat the wrong part of the problem.
When (not if) something serious happens, you will most likely not be able to work. So your income goes to $0.00. Your bills stay the same (cable, electric, auto, etc). And now you have NEW bills! Doctor copays, deductibles, etc. The real kicker is even your Health Insurance still has to be paid. IF you have a good Licensed Insurance Agent, you will have Waiver of Premium so you do not have to keep paying on your Life Insurance.
It is the loss of income that causes people to max their credit cards and over draw on cash advances and get in the financial bind. Not the medical bills. Today, Health Insurance caps your annual medical expenses at just over $6,000 a year (often times less). That you can negotiate a payment with. Good luck with the credit card companies.
But you having a medical emergency does not mean you do not have to make your mortgage payment. They can still foreclose.
That is why having a plan to have cash is important! Whether it is saving up 12 months worth of expenses or having Indemnity policies that pay you cash. I help people understand their options and I can help you too!
The important thing is to enroll in the coverage BEFORE you get unhealthy.