Disability Policies

Close up of a medical insurance form with stethoscope

By Varnell Bien-Aime

Often times when we think about financial security we tend to look for ways to invest in our future with stocks, bonds and currencies. So many Americans are not prepared to deal with the loss of their most important asset. Do you know what that would be, you give up? If you said your home you would be wrong but you would’ve given the most popular answer. Take another guess, if you follow me, you’ve heard me teach and explain that your most important asset is your ability to earn an income.

Have you ever thought about all the different items we place insurance on, cars, homes and our lives and while they are all important in a solid financial plan, why aren’t more people placing insurance on the income they make. Think about it, who are the people and the items that are affected the most is you are injured and are unable to work for a long period of time.

Do you realize that you are three times more likely to get hurt or injured during your working years than you are to die. If you are no longer working and brining an income how will you pay for all the insurance for the cars, homes and even life insurance. Many people think they are covered because they may have disability policies through work but don’t realize those benefits are taxed at 20%. Based on your current income, can your lifestyle survive a 60% reduction of your current income. That’s right, disability policies rarely cover your entire income as an incentive for the insured to get back to work.

Disability policies when leveraged correctly can help with business buy sell agreements, business overhead expense like employee salaries, rent, utilities and even continue to contribute into your retirement account.