Page 38 - Foreign Service Journal - March 2013

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38
MARCH 2013
|
THE FOREIGN SERVICE JOURNAL
IS ADEQUATE DISABILITY
INCOME INSURANCE
AVAILABLE TO
FS FAMILIES?
BY WI L L I AM CARR I NGTON
A
s a fnancial adviser and a Foreign
Service spouse, I know frsthand
just how important it is for Foreign
Service families to develop a fnan-
cial plan to enable them to achieve
their goals and manage risks. One
common tool for mitigating fnancial
risks is insurance, whereby you pay
someone to assume a risk for you that you are unwilling or
unable to assume for yourself.
High on that list is loss of income due to a long-term or
permanent physical disability.
According to the
Council for Disability Awareness,
most
disabilities are caused by illness rather than accidental injury.
And since the chances of developing a serious illness increase
with age, one could assume that the need for disability insur-
ance would also increase for older employees.
In fact, while younger employees may be at a lower sta-
tistical risk of a disabling illness, they have a lower fnancial
capacity to absorb the risk. Older employees who have paid of
a mortgage, accrued many years toward a pension, gotten kids
William Carrington is the founder and principal of Carrington Finan-
cial Planning, LLC of Arlington, Va., which specializes in fnancial
planning for Foreign Service employees. He is the spouse of FSO Mar-
got Carrington. Te views expressed here are those of the author only.
Many Foreign Service members
mistakenly believe they have more
disability income insurance than is
actually the case.
FS KNOW-HOW