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Think You Don’t Need Income Insurance? Think Again

Income insurance Safetynet review - John a real customer

SafetyNet® income insurance provides a lump-sum of cash—no matter what your credit score, savings status or income level is—if you lose your job unexpectedly or can’t work due to illness or injury.

Income insurance is a new type of insurance coverage, so naturally you’re skeptical about why you would need it.

You may feel safe and secure in your job. Maybe you already have a nice little emergency fund saved up. Or perhaps you’re counting on the government to save the day when things go awry. You’ve never had to protect yourself against a layoff or disability before, so why spend the money now?

Below are some popular myths about why you don’t need income insurance…and why those myths are wrong.

MYTH #1: “I’ll get another job really fast.”

We certainly hope you are right! The fact is, however, it takes more than 6 weeks for the average worker to land a new job, and that’s without the major economic and employment downturns we’ve seen in the recent past. Even in the best of circumstances, staying financially afloat while looking for work requires a healthy emergency fund to lean on.

Income insurance Safetynet review - Jeremy a real customer

Jeremy, a real SafetyNet customer

Equally important for SafetyNet customer Jeremy is the reassurance that he will not only have a financial cushion while he pursues new work but also will be able to stay active in his community. “Working is important to me, being involved in the community is extremely important,” he said. “SafetyNet really gives me that opportunity to keep going with life even if there are set backs.

MYTH #2: “Unemployment and Social Security benefits are good enough.”

When you’re out of commission for extended periods of time, government-run unemployment insurance and Social Security Disability Insurance (SSDI) might help. But when you’re looking at feeding a family, maintaining a mortgage or simply keeping yourself from drowning in debt, government-run options often don’t cut it. Government insurance is neither a speedy nor a guaranteed solution.

Depending on the state in which you receive unemployment benefits, for example, you may be subject to a waiting period. No matter where you are, you most certainly will wait weeks before your claim is processed. Benefit amounts are only a small fraction of your previous income, as well. Your bills keep piling up while you have a lot less money to pay them.

In addition, there are many reasons your claim may be denied, including unemployment due to a strike and the possibility that your employer never paid into unemployment insurance in the first place.  Similarly, SSDI is available only to workers who have experienced extreme impairment or illness, and cases take on average 3 to 5 months to be determined. Even then, beneficiaries receive an average of only $1,234 per month. Meanwhile, medical bills are stacking up and payments coming due.

As SafetyNet customer John tells us, “I believed that unemployment comp. and disability insurance would always have my back no matter what. That time is long past. Nowadays, it seems those plans have more excuses to NOT help.”

MYTH #3: “My savings will cover it.”

Kudos if you have managed to save several months’ worth of expenses should you find yourself out of a job! Most people can find a way to scrape by when they have to. Many of our customers tell us their painful stories of how they made it through previous layoffs and disabilities. Often, they were surprised at how quickly their savings and work benefits were used up each month on household costs, debt repayments and other basic expenses. Some found themselves dipping into their retirement funds just to stay afloat. SafetyNet income insurance can help you go from feeling hopeless to feeling empowered.

When SafetyNet customer Susan was laid off due to a workforce reduction after 23 years with the same corporation, for example, a cascade of personal changes and financial responsibilities left her completely financially blindsided. “What peace-of-mind that would’ve been to receive a one-time lump sum payment to fall back on,” she says looking back. “I decided for such a low monthly payment I’m going to do this for a peace-of-mind.”

For John, SafetyNet’s responsivity when he was unable to work due to an unexpected surgery was a godsend. “I filed a claim and it was approved within 24 hours.” While his work did cover a percentage of his lost wages, the relief to his family was palpable. “I couldn’t believe for such a little amount each month you would get such a big payout at the end,” said his wife. “It was a huge relief to know we were going to be okay.”

MYTH #4: “My job isn’t dangerous, so I don’t need disability insurance.”

“Quite frankly, I never dreamed that disability was in my future,” said John who, as the sole breadwinner in his family, works primarily in front of a computer. Then a small tear in his retina suddenly required emergency surgery—and 6 weeks of recovery time away from work. “I was fearful about what this would mean for our family.”

While John was fortunate that his employer paid a percentage of his lost income, he says, SafetyNet’s coverage helped fill in the gap. “It was that little extra level of help through a difficult time that made it easier for our family.” It also made getting well an easier task: “Having that one less thing to worry about and being able to just focus on getting well, that was huge for our family and made the process of healing easier.”

Likewise, one wrong move in the garden for SafetyNet customer Bud led to a total hip replacement—and three weeks of lost wages. Because he’d purchased income insurance, SafetyNet sent him a check for $6,000 within days after his approved claim. “I never would have thought it would be so soon or so un-stressful!” he says.

Bud, too, says that SafetyNet’s coverage helped facilitate his recovery. “If you’re worried about not being able to pay the bills or not being able to feed your family… how do you heal then?”

Of course, SafetyNet income loss insurance also covers on-the-job injuries. Just ask small engine technician Raymond who, having benefited from his coverage, says “there’s lots of hardworking Americans that could use insurance like that.” SafetyNet is built on the belief that, no matter what the cause of your disability, losing an income only adds insult to injury.

MYTH #5: “I should only buy insurance if I know I’m going to come out ahead.”

No one wants to waste money. The thing is, when you know something bad is definitely going to happen, there are steps you can take to reduce the negative consequences. Insurance, on the other hand, covers you for the things you DON’T see coming. You have car insurance in case you become the victim of a bad driver. SafetyNet covers you in case you become the victim of bad business management, an injury or a prolonged illness.

“I don’t think people need to go around being afraid about losing their job,” says SafetyNet customer Rachel, who works as a fitness trainer on top of her media job. “But I do think you need to be realistic. We all have things we can’t control. That’s what insurance is for: you hope you’re not gonna have to use it, but it’s there for those things that you couldn’t have foreseen. I feel more prepared. There’s a little bit of a cushion there to give me time until I land that next role.”

As a single mother, that peace-of-mind is invaluable. “I need to have a stopgap in place to make sure I’m okay and that my daughter is okay. There’s a lot to be said for growing up feeling safe and secure.”

In fact, the one thing SafetyNet customers across the nation have in common is the peace-of-mind they enjoy knowing they have it, whether they end up needing it or not.

When you think about it, reasons Jeremy, “we protect our auto, our home, our life. Why not protect the loss of a job or disability situation?”

MYTH #6: “It’s too expensive.”

With SafetyNet, income insurance can cost less than $10 per month, depending on the coverage you choose. That’s a day of parking or a month of Netflix…or, as Susan puts it, “If you think about it, the low monthly payment is almost as much as the cost for one meal at McDonalds.” And the pay out? A lump sum up to $9,000 depending on what you choose to buy.

If you set aside the same monthly cost into an emergency fund, it would take more than 20 years to save the benefit amount. Meanwhile, while you’re saving, you’re still going to worry about how you will pay your bills in the event of a sudden major expense. SafetyNet insurance gives you immediate alleviation from this worry and, should you need it, helps protect your savings in the meantime.

MYTH #7: “It’s too good to be true.”

Well, it IS good. But it’s also TRUE! SafetyNet is already available in 10 states and was reviewed by state regulators before it could become available for you to buy. And SafetyNet keeps expanding into more states as it grows to meet demand.

As our customers will tell you, it’s simple, clear, reliable–and we stand behind our promises to our customers. But don’t just take it from us–take it from Jeremy, John, Bud, Raymond, Rachel, Susan and other SafetyNet customers who are benefiting from the peace-of-mind that comes from knowing that SafetyNet has their backs.