Personal Finance Essentials
Disability Insurance: Protecting Your Income
Your Paycheck Is Your Most Valuable Asset
One in Seven Workers Will Lose It Before They Retire
Your largest asset is not your house, your health or your company pension. For almost everyone who is still working, the largest asset is the ability to produce an income. Losing that ability before retirement is far more likely than most people realize.
One out of seven employees will be disabled for five years or more before reaching retirement age. For a 32-year-old, a serious disability lasting 90 days or longer is 6.5 times more likely than death. Yet most people focus far more on life insurance than on disability coverage.
Disability income insurance protects your earning ability. When shopping for a policy, look for one that pays benefits to your expected retirement age – not just for five years. Many policies pay for only five years, which provides little protection unless you are already close to retirement.