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Protecting Yourself with Disability Insurance

What is your largest asset? You might name your home, if you own one. Or your retirement plan… Your education… Maybe even an expensive collection of some sort.

But truly, you are your biggest asset. Your ability to work, earn income, and continue earning income for years to come is the single largest asset most of us own. Just multiply your annual salary by several years and you’ll see what we mean.

So, if something should happen that costs you the ability to work, this would be a major setback for you. You protect your home against fire and floods, you protect your car against accidents and theft…But are you protecting yourself against disabilities that could prevent you from earning income?

That’s the whole point of disability insurance, and it’s much more important than most people think. Did you know that half of working Americans don’t have enough savings to cover more than a month of expenses, in the event that they can’t work (according to a survey by Life Happens)?

Who needs disability insurance? Everyone. If you work, you need disability insurance. But it becomes even more important once you own your own home,  take on debts, have dependents, and so on.

How much coverage do you need? This is an issue to discuss in detail with your insurance representative. But to keep it short and sweet, you would need a monthly payout that at least covers very basic living expenses such as your mortgage payment and regular bills.

What else is available? Social Security does offer a program for disabled workers, but it can be difficult and time-consuming to qualify, and the payments are not sufficient for most people to cover all living expenses. Worker’s compensation is another option, but remember that your disability would have to be work-related in order to qualify. According to the National Safety Council, 73 percent of disabilities result from illnesses and injuries that are not work-related.

Want to know more? Give us a call. We can help you figure out what type of insurance, and how much coverage, you really need.