Financial Planning

Your Income Is An Asset. Protect It With Disability Insurance

Your income is likely one of your most important assets. Without it, the ability to continue paying for other assets such as your mortgage or vehicles. One way to protect your income can be with disability insurance. 

Disability Insurance Helps Protect Your Income

How do you protect the things that you've worked so hard for? If you're like most Americans, you rely on insurance to protect some of your most important assets - such as your home or vehicle. For example, you have a homeowner's policy so if your house were to burn down, you won't have to worry about where the money will come from to rebuild.

Having the right insurance is critical when it comes to protecting your most important assets. But when you get right down to it, what made those assets possible? Your income of course! Without an income, you likely wouldn't have qualified for a home or auto loan in the first place, let alone have the monthly income to manage the monthly payments.

If you're like most people, your ability to earn an income is one of your most vital assets. Yet despite its importance, few of us have the insurance coverage to protect it. We're of course talking about disability insurance.

Why Get Disability Insurance?

Ask yourself, if you were to become too sick or hurt to work, how would you manage financially? You may have an emergency savings, but how long would that last if you were sick or disabled and out of work for 6 months or longer? Disability insurance could help protect against this potential reality.

2014 Disability Fact Sheet, LIMRA

2014 Disability Fact Sheet, LIMRA

Click on image to enlarge.


Despite the importance of insuring your income with disability insurance, less than one-third of working Americans have a disability insurance policy. Why? Because many people don't think it will happen to them - especially if they're young. However, according to the Social Security Administration, over one in four of today's 20 year-olds will become disabled before they reach retirement age.2

Another reason for putting it off is the misconception that the majority of disabilities are work-related and therefore, covered under workman's compensation benefits. However, according to LIMRA, nearly 90 percent of disabilities occur outside of the workplace and that illnesses - not an accidents - are responsible for most disabilities.3

Simply put, having disability insurance protects your ability to earn an income by protecting your paycheck if you become too sick or hurt to work. The difference this type of policy can have in your life can be substantial, and choosing to go without it puts nearly everything you have at risk.

Don't wait. Check with your financial advisor or insurance professional who can help you find a disability policy that's right for you.

12014 Disability Awareness Fact Sheet, LIMRA
32014 Disability Awareness Fact Sheet, LIMRA
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What is Disability Insurance?

Disability insurance can help you maintain the level of income you and your family have come to expect. Without disability insurance, an accident could prevent you from bringing home the paycheck amount you're used to. You may want to consider protecting your most important asset - your income - with disability insurance. For more information, visit the Protective Life Learning Center.

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

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