Why Income Protection?
We all look forward to a brighter future and dream about what tomorrow may bring. Through careful planning and follow-through, achieving financial security and maintaining your lifestyle are within reach. Protecting your income is key.
How would your life change if you suddenly became too sick or hurt to work and could no longer earn an income? After all, you want to continue to support your family, keep savings intact, save for your children’s college education and prepare for retirement.
Although we may not want to think about it, insuring your income could be the most important thing you ever do. Why? Because your ability to work and earn an income is the asset you rely on most.
Take a look at how a lifetime of income compares to the typical value of a home or car:
- Car: $33,5601
- Home: $239,7002
- Income: $4,983,0003
What does this mean for your income?
Use the chart below to estimate what your earnings potential is between now and age 65. Then consider all the big and little things your income provides over that time frame—from big expenses like housing, cars, and education to smaller things like electronics, groceries, and vacations.
And when a disability lasts a long time—such as in the case of a chronic or recurring illness—the financial loss it creates can significantly affect your family’s lifestyle and future security.
That’s why individual disability income insurance (DI insurance) is one of the most important components of any financial plan. Combined with Retirement Income Protection, DI insurance can help replace lost income, maintain your retirement savings, and provide resources for returning to work when you’re ready.
But it’s about far more than just that. It’s about making a small investment today to ensure that you and your family are taken care of, even if the unexpected happens. It’s about securing the benefit of financial peace of mind during illness or injury, when healthcare costs could stack up. It’s about insuring your most valuable asset and your most important return on investment—your future.
1 Average new car price, Kelley Blue Book, August 2015 (as seen on https://www.usatoday.com/story/money/cars/2015/05/04/new-car-transaction-price-3-kbb-kelley-blue-book/26690191/).
2 U.S. Existing Single-Family Home Sales Price, YCharts, https://ycharts.com/indicators/sales_price_of_existing_homes. As seen on 07/2016.
3 Projected cumulative income of a 35-year-old earning $6,250/month ($75,000 annually), assuming a 5% annual increase to age 65.
4 Commissioners Individual Disability Tables, CSO.