You have no doubt heard of – and probably own – health insurance, auto insurance, and homeowner’s or rent insurance. You might even have life insurance. And maybe your parents purchased some form of long term care insurance.
But have you ever heard of income insurance? We didn’t think so.
That’s because this type of critical protection is typically referred to as “Disability” insurance.
The Stigma Around “Disability” Insurance
While nobody thinks twice about insuring their car or home, the scary fact is that few people take disability insurance seriously. People don’t believe they will ever get hurt badly enough or become sick enough to keep them out of work.
People also don’t want to talk about things that are difficult to think about – like car crashes, unforeseen illnesses, or freak accidents. But how many people do you know who have experienced one of these unfortunate incidences?
Consider this fact: 1 in 4 20-year-olds will suffer a disability at some point before they retire. (1)
Think if you or your young adult child couldn’t work for an extended period of time. How would bills get paid? How would livelihood be affected?
Insuring Your Income: The Logical Choice
If you take a straw poll and ask people what their biggest assets are, you’d get many of the same answers. “My family.” “My house.” Maybe even, “my vehicles.” Now think about how many of these assets you could support without your paycheck, your income.
Without an income, mortgage payments and rent payments can’t be made. Groceries and utility bills can’t be paid. Everything that you hold dear would be in jeopardy – and all of this is on top of dealing with a debilitating injury or illness.
While these scenarios can be frightening, our goal is not to scare people. It’s to educate people and their families.
We refer to disability insurance as “Income Insurance.” In the event that the unthinkable happens to you, income insurance can help ensure that your loved ones and assets are protected.
Looking into income insurance could be one of the cheapest, smartest decisions you could ever make for you and your loved ones.
(1) U.S. Social Security Administration, Fact Sheet, February 7, 2013.
NOTE: These are the opinions of the author and not necessarily those of Cambridge; they are for informational purposes only, and should not be construed or acted upon as individualized investment advice.