What is your largest asset? Many people would respond, their home.
Actually your ability to earn an income could be your greatest asset. Let’s assume you are one of the few middle-class Americans left. You are 35 years old and you live in a nice $250,000 home with a spouse and 2 kids. Your annual salary is a solid $75,000. If you work for another 30 years your earning potential is $2,250,000 without any income increases.
Do you insure your $250,000 home from a catastrophic loss?
Do you insure your $2,250,000 income from a catastrophic loss?
There are three scenarios:
You live healthy and incident free.
You have an unfortunate death.
You have a disability and stop working.
You can insure your death with life insurance. To insure your income from a disability, you use disability insurance.
Individual disability premium rates and availability are driven by your occupation. Other factors include location, number of hours, self-employment, hazardous activities, health issues, and income.
Individual disability insurance is one of the least sold insurance products, yet it insures your largest asset. The reason is individual disability is expensive compared to group disability. However, the individual disability is generally far superior in coverage due to its definition of a disability. Also, if you compare the long-term disability premiums to your $250,000 homeowners’ premium you might be surprised.
If you would like additional information regarding disability insurance, forward to us a completed quote form at your earliest convenience.