Protecting Your Most Important Asset


Why do I need income protection (otherwise known as disability insurance)?

Remember the adage, “It’s only a big deal, when it’s a big deal.”  Just as oxygen is critical to the functioning of our internal biological systems, cash flow works the same way in our financial lives.  Hence, it is important to prepare for the loss of income due to an accident or illness.  After all, our largest asset is not our home, our cars, or our retirement plans, but our ability to get up and go to work every day and earn an income.  

Having a regular source of income clearly contributes economically to the ongoing well-being of our families. 

Did you know that:

  • You are more likely to become disabled than to die prematurely.
  • More than one in four of today’s 20-year-olds will become disabled before they retire.
  • 95% of disabling illnesses and accidents are not work-related, and therefore are not covered by worker’s compensation insurance.
  • One in three Americans between ages 35 and 65 will become disabled for more than 90 days.
  • Approximately 90% of disabilities are caused by illness rather than accident and is often outside of your control (think various forms of cancer or neurological diseases).

We are our most valuable asset and our ability to earn an income is crucial to our daily existence.  So doesn’t it make sense to have insurance that covers any disruption in our ability to work?  When life throws you a curveball, the last thing you want to think about is downsizing or cutting back.  However, with a solid income protection policy in place, you will be able to maintain your current lifestyle.

At a minimum, if your employer offers disability coverage, consider taking it because it is often subsidized and underwriting criteria can be easier.  Even then, for those who work in cyclical industries or are considering a career change, an add-on policy which is portable in the event of temporary unemployment could be considered prudent. 

Don’t wait until it’s too late, your most important asset – you! – is worth protecting!