Medical Bankruptcy

In 2009, while America was continuing to fall into recession, Tennessee was named the national leader in personal bankruptcies and had been so for the past 4 years. More than 53,000 bankruptcies were filed, and the percentage that were caused by extensive medical bills was staggering.

About 60% of the bankruptcies were filed because of medical expenses beyond what the individual could afford. Of the 60% of individuals filing for bankruptcy, due to high medical costs, 80% had medical insurance. Their medical costs were still simply too much to bear.

This alarming situation tells us many things, but one thing in particular stands out: Medical insurance alone is not enough to protect people from financial downfall. Many of these cases of bankruptcy were as a result of a loss of income due to the injury or illness which prohibited the individual from working and earning enough income to pay their portion of their medical bills.

How would these figures have turned out if all 53,000 bankruptcy declarers had individual disability insurance? Some of them may have had DI, but undoubtedly the bankruptcy numbers would be dramatically smaller if DI were in place throughout. It should be known that 65% of income replacement is the bare minimum required to help maintain one’s lifestyle. If this level of income protection cannot be achieved through the traditional DI carriers then you need to seek High-Limit Disability coverage through Petersen International Underwriters.

Even an individual of limited means can pay off big bills and climb out of major debt if only he or she retains the ability to earn an income. If income cannot be earned, a guaranteed source of cash flow replacement using Disability Insurance is essential!