You’re probably aware that insurance companies regard sky-diving, flying, SCUBA diving and motorcycle riding as extremely dangerous activities – and they probably are…
But recreational cycling?
Cycling has become a popular family sport in the past few years and is generally regarded as healthy exercise and a contributor to well-being. But we’ve all read about the occasional fatal collision of car and bike.
Please check your life insurance coverage if you have dependents! Young families would be in serious financial difficulty if a parent died prematurely.
Think about it a bit, in a family with only a single income earner, income would end with the death of that parent. An equal risk is that the parent at home dies in a biking accident. Who will care for minor children then? Life insurance benefits would be a big help in supporting the family financially. Life insurance is a good thing to have if either parent spends much time on a bike.
A serious injury, whether temporary or permanent, could also result in the interruption of normal income from work.
It would be wise to check on your disability income coverage if you spend time on the road and want to adequately protect yourself and your family from the financial consequences of a biking accident.
If you are a surgeon, physical therapist or construction worker, you probably depend on your hands and arms to carry out your duties. Something like a serious biking accident could easily derail your financial security if your recovery takes months or years. Generally speaking, income goes down while expenses go up.
Please assure yourself that you have enough emergency cash, financial assets and disability insurance to weather a short or long-term absence from work, whether it’s a biking accident or an extended illness.
You’d be surprised what you find when you check out the disability insurance (sometimes known as income replacement insurance) provided and paid for by your employer. While disability plans provided by your employer can help fill income gap, they typically don’t start paying right away and when benefits do begin, they are likely to be much lower than your customary salary income. In addition, those benefits are taxable, thereby reducing your expected benefit at just the time you may need income the most.
If your employer offers supplemental life and/or disability insurance (i.e., you may elect additional insurance and pay for it yourself through payroll deduction), consider adding more coverage, particularly if you are involved in recreational sports.