Why Disability Insurance should be the foundation of your financial and insurance plan.

Most everything we do in life requires that we pay for it. Your housing in the form of rent or a mortgage payment, transportation, education, food, travel and leisure, it all costs money. Most of us get that money from the income provided by our employment.

When I ask clients – ‘What is your biggest asset?’ I get varying answers but most often the answer is my house, my retirement account, or my savings. The right answer though is Your Ability to Earn an Income. For many people the income they earn during their lifetime will be in the millions of dollars. Doesn’t it make since to protect that income?? We buy insurance on our homes, our cars, even our cell phones but strangely we forget to buy insurance on the biggest asset we have. This is what we should protect first!

Think of yourself for a minute as a ‘money making machine’. Every week of every month you’re going to make money. If you had a real ‘money making machine’ in your basement that printed you money every week of every month would you want to buy an insurance policy on it? Would you want to make sure that if it ever broke down you would still be assured of getting that money?? Of course you would!!!

The real question everyone should ask themselves is: What if my income ended? The truth is without an income everything else stops. This makes PROTECTING your income one of the most important things you should do. Disability insurance is the answer to that income protection.

Disability insurance allows you to receive 60% of your income on a tax free basis* in the event you become disabled and are unable to work. If you and/or your family rely on your income the first thing you should do is protect it.

Let’s look at a scenario. You set up a perfect plan for retirement, picking the right investments, the perfect 401K plan, you select the best performing mutual fund. All this is great but what if 5 years into that plan you become permanently disabled and are unable to work. If you can’t fund that retirement plan even the ‘perfect plan’ becomes useless. The real key is insuring you can fund that plan regardless. Picture a retirement plan as a pyramid. Without the base or foundation of that pyramid being a good long term disability policy the rest of that pyramid may collapse.

The chances of you becoming disabled are higher than you think. You’ll probably be surprised by the statistics. The cost of a disability policy may surprise you as well it is only approximately 3% or less of your total income. That is a small price to pay for the peace of mind it would give you and your family in the event of a major illness or injury that prevented you from working. Contact your trusted insurance agent for a quote today!