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Most of us think nothing of insuring our cars, homes and other
valuables. But many of us overlook our most valuable asset ... the one
that makes all the others possible ... our income.
Of course, life insurance takes care of financial loss due to premature
death. But what happens if you're sick or injured and can't work for
several months or even years? One in seven people becomes disabled for at
least five years before reaching age 65. And between ages 35 and 65, one
in five people will become disabled, statistics show. Being out of work
for an extended period can have devastating financial consequences on a
family. Yet, more Americans have life insurance policies than have
disability insurance (about 70 percent vs. 40 percent). We protect
ourselves against dying, but not against losing our greatest asset — our
earning potential.
To put it bluntly, when you die, you no longer have expenses. When
you're disabled, you still have living expenses, now compounded by medical
expenses. You've got rent or a mortgage to pay, food, car, utilities, and
perhaps your children's college tuition.
That's where disability insurance comes in. Disability insurance can
offer a financial safety net. When you're unable to work for an extended
period of time because of an injury or illness, it pays monthly benefits
until you are well enough to return to work. (It won't protect you, of
course, if you are laid off or fired.)
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