Don't Overlook Disability Insurance

Professional financial adviser urges workers to protect their earning power

ATLANTA, May 25, 2022 /PRNewswire/ -- Losing the ability to work is one of the greatest risks to financial stability of adults who support themselves, says certified public accountant Rebecca Pavese.

Pavese, a senior client service manager for Palisades Hudson Financial Group LLC, warns that even robust emergency funds typically only cover three to six months of expenses. This may not provide enough of a cushion to recover from a serious illness or injury, even if you eventually recover. For formerly working adults who become permanently disabled or chronically ill, losing earning power can be a serious blow to their financial future.

In an article from Palisades Hudson's newsletter (available online at, Pavese observes that medical insurance can help individuals cover the costs of hospital stays and outpatient treatment, but it does not replace income. This means that sole or primary earners may struggle to cover rent, utilities and other essentials – unless they carry disability insurance.

"Without disability insurance, the expenses of daily living can eat through any savings cushion you've set aside," Pavese writes. "You may have to take on burdensome credit card debt if you run out of savings, or the financial burden may fall on your family or friends. Disability coverage can remove this prospective stress."

Pavese advises first checking to see if your employer offers disability insurance. Next, check with organizations you participate in, such as medical or legal associations. If you can't access coverage this way or these options don't provide the coverage you need, you may end up shopping for individual long-term disability coverage.

"Disability prices are fixed by law, so be aware that working through an independent broker will not cost more than buying a policy directly from an insurer," Pavese notes.

Rebecca Pavese has served as a client service manager for more than 15 years, and has been part of the Palisades Hudson team for more than 20. While she is based in the firm's Atlanta office, she serves clients nationwide. A recognized expert on tax and other financial topics, Pavese has been quoted by leading publications including The Wall Street Journal and The New York Times. She also contributed chapters to  Palisades Hudson's books "The High Achiever's Guide to Wealth" and "Looking Ahead: Life, Family, Wealth and Business After 55" (both available on Amazon).

Contact: Amy Laburda, [email protected]

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SOURCE Palisades Hudson Financial Group LLC