How Long Could the Coronavirus Keep You Out of Work
Written By: Joel Palmer, Op-Ed Writer
It’s impossible to escape the daily headlines. More infections. Events cancelled. The stock market crumbling.
The coronavirus known as COVID-19 has disrupted much of daily life since entering the U.S. The impact will likely grow before the virus runs its course.
Much of that effect is the reaction to the virus and the measures taken to minimize it.
But for those who contract COVID-19, the impact could be more serious. In addition to the physical toll, the virus can lead to financial concerns as well.
Now may be a good time to consider disability insurance or review your existing coverage.
What is the coronavirus? In December 2019, a new type of virus was discovered in China. It was identified as a coronavirus, which is a general term for a family of viruses that cause upper respiratory tract illnesses. It was later given the name COVID-19 by the World Health Organization. In COVID-19, ‘CO’ stands for ‘corona,’ ‘VI’ for ‘virus,’ and ‘D’ for disease, while 19 refers to the year 2019.
On March 11, the World Heath Organization declared COVID-19 a pandemic, defined as a worldwide spread of a new disease that affects large numbers of people. The last designated pandemic was the 2009 H1N1 “swine” influenza.
According to the Centers for Disease Control (CDC), COVID-19 spreads through close contact with an infected person, especially if that individual sneezes or coughs. The CDC also said It may be possible to get COVID-19 by touching a surface or object that has the virus on it and then touching your mouth, nose, or eyes.
Typically, the virus causes coughs, fever and shortness of breath. Serious cases can lead to pneumonia, while more susceptible patients can suffer organ failure and death. Many of those who die from the virus were already in poor health. There is no vaccine or treatment for the virus.
How long the virus lasts and how serious one’s symptoms depends largely on the strength of the person’s immune system.
Hopefully, you won’t experience the illness. But if it were to happen, here are a few questions you should consider before it does.
What happens if the coronavirus keeps you out of work? Anybody who contracts the coronavirus needs to remain quarantined until they no longer carry it. In severe cases, COVID-19 can cause long-term illness. Unless you can work from home, that means calling in sick for a couple of weeks or even longer.
In a recent survey conducted by GoBankingRates.com, nearly half of respondents said they didn’t have enough saved to make up for lost income if they missed work.
Do you have paid sick leave? Many workers will be able to stay home and recover from coronavirus by working from home or using paid sick leave.
However, more than 32 million workers don’t have paid sick time, according to the U.S. Bureau of Labor Statistics. Currently there is no federal law that requires companies offer paid time off for illness.
Those who fall in this category could face severe financial distress, especially if they don’t have savings to fall back on.
Do you have an emergency fund? An emergency fund is money set aside to help you through unexpected events that can hurt you financially. Having an emergency fund can improve your financial security and minimize the stress of a job loss, temporary disability, or major repair.
Without an emergency fund, you may live in fear of crisis. And if an adverse event occurs, like contracting coronavirus or having your job impacted by the pandemic, an emergency fund can protect you from having to use credit cards, take out loans, borrowing from your retirement account, or asking friends or family for help.
Financial experts suggest your emergency fund hold an amount equivalent to at least three months of take-home pay. Another rule of thumb is to have enough to cover essential expenses for three to six months in the event you have no income.
Do you have disability insurance? If you don’t have paid sick days and/or an emergency fund, then you absolutely should have disability insurance to minimize the financial impact of coronavirus.
Even if you have these resources to count on, you should strongly consider disability insurance.
COVID-19 is another example of the unexpected events that can prevent people from working. People infected with coronavirus need to be isolated in a hospital or at home depending on how sick they are. And as written above, some patients can suffer long-term illnesses such as organ failure.
Estimates range from 25 percent to 30 percent of American workers will endure some type of temporary disability during their careers that will prevent them from working.
Many people think of long-term disabilities as being caused by accidents. But in fact, according to insurance industry statistics, only 9 to 10 percent of long-term disabilities result from serious accidents.
While infectious diseases don’t account for a large percentage of disabilities, the Council for Disability Awareness says that as diseases and infections grow resistant to antibiotics, the more disability claims will result.
Disability insurance covers the potential loss of income caused by injury or illness. If you are unable to work because of a covered disability, the policy will replace part of your income. You will receive these benefits for as long as you’re disabled or up to a maximum period of time spelled out in the policy.
Having disability insurance means being able to buy food, pay bills, and cover household expenses while you’re unable to work. This includes a long-term absence caused by coronavirus.
About the Author
As an NAMP® Opinion Editorial Contributor, Joel Palmer is a freelance writer who spent 10 years as a business and financial reporter and another 10 years in marketing for the insurance and financial services industries. He regularly writes about the mortgage industry, as well as residential and commercial real estate, investments, and retirement income planning. He has also ghostwritten books on starting a business, marketing, and retirement income planning.
