No one likes to think about death and dying, but what would your spouse and children do if you were to suddenly leave them too early? Life insurance does not just cover your funeral costs, it can cover other costs that, without the benefit, could leave your family in a real pickle. 

1. Pay-off debit
Say you were in the hospital for a while before you passed, your family is now responsible for paying those hospital bills. You would not want them to worry about paying those while they are trying to pick up the missing pieces. Life insurance can cover it.

2. Replace your income
If you are the primary breadwinner in your family, your passing can dramatically change your family's quality of life. Life insurance can help fill the gap of your family not receiving your income anymore so your family can continue to live the same lifestyle.

3. Pay for future goals
Many of us have goals that are far into the future, you would not want your family to give up on what you started just because you are no longer there. Life insurance can be used towards these goals, like college, weddings, and traveling the world.

If your employer offers life insurance, talk to HR about what you need to do in order to get on it. If not, do not worry, RMBG offers individual life policies with some of the best life insurance companies in the world! Talk to a RMBG team member for quotes.

Long-Term Disability Insurance is replacement of income if you were to get hurt or sick and could not return to work. Most policies will cover you 5-10 years or even to retirement age. LTD usually covers around 60% of your pre-taxed earnings. You can use this money to pay your mortgage, car loans, and other obligations. LTD can be paired with Short-Term Disability to make sure you are covered from day one of an accident or illness. Once the Short-Term Disability runs out, LTD kicks in. 

While many companies offer LTD as part of their benefit package, many people opt out of the fee. This is because they do not understand why LTD covers and how important it can be if you were to ever need it.

LTD covers what Workman's Compensation does not
When most people think about being disabilities, they think about it being attributed to their job, thus workman's comp would pay until you were better. This is rarely the case, in fact less that 5% of disability claims come from work related events. LTD covers you for illness and disabilities that may happen while you are off the clock. For example: you are driving to the grocery store and get into a bad car accident that leaves you unable to preform your work duties for 6 months, LTD would help cover some costs after the waiting period. Workman's comp doesn't cover that. 

You are more likely to need it than life insurance
Although life insurance is very important and we recommend you keep some on you at all times, you are more likely to face a disability than an early death. The U.S. Census Buearu states that an average of 1 out of every 5 workers will face a disability. 

Most families cannot cover income loss
If you are the primary bread winner in your family and they rely on you to pay the bills and keep everyone afloat, you need LTD insurance. Most families do not have the savings to pay their monthly expenses for an extended amount of time if the bread winner were not able to go to work and make their monthly check. In fact, over 50% of Americans would not be able to afford an expected expense of $500 without going into debt. If you do not have savings that can get you and your dependents through a couple of months while you recover enough to go to work, you need LTD.

Many people purchase their LTD through their employer, make sure you ask your Human Resources department about your options. If they do not offer it, you can look at self-funded plans as well. However, self-funded plans often come with health questionnaires and higher rates. You can possibly refer your employer to an insurance agent or insurance broker that can review the companies benefits and possibly make LTD a part of your package. 

If you still have questions or comments, please leave us a comment! We are always happy to help!