Only a very small percentage of Americans have exceptional credit as reflected in a credit score of 800 or greater. The large majority of U.S. consumer have a FICO credit score in the 600s or 700s, but a significant number have “very poor” credit scores below 580. Gaining access to a credit card can be difficult for those with very poor credit scores.
The prospect of suddenly having to face life with a disability that limits your ability to work in the way you’re used always seems unlikely. Disability is something other people face, maybe in old age, but not you. While disability insurance may seem unnecessary right now the facts give cause for the preemptive action.
One of the first lessons of finance we are taught, by our parents or through some basic personal finance course, is to make creating an emergency fund our top priority. Having a reserve of cash equivalent to six to 12 month’s worth of living expenses is considered the most fundamental principal of financial security.