Your Precious Income,Could You Survive Without It? – Guest Blog ...

by FEST

Most of us become very dependent on the things we love and wonder how we could have lived without them. Imagine having to wash your clothes by hand. Or remember the days of the pay phone? Personally, I can’t imagine how I ever survived without my beloved iPhone! Sometimes even our luxuries feel like necessities.

To take care of the important assets that we couldn’t live without, we leverage our risk with insurance. This includes homeowner’s insurance, auto insurance, and even life insurance.

However, have you considered covering your most valuable asset—your income? Imagine surviving without your earnings. Could you survive? Do you have enough money in savings to cover your expenses if you couldn’t work for six months? What about for two years? Or longer?! The fact is most people overlook protecting their income and yet most people would not be able to survive without it.

The chances of becoming disabled are actually pretty high. Between ages 30 and 65, a third of us will become disabled and yet most people don’t prepare for this risk. It’s much more likely to happen than a flood or fire on your property and the ramifications are much greater.

Disability insurance is designed to pay you a monthly benefit if you become sick or injured and can’t work. A personal policy is non taxable (if paid with after tax dollars) and typically kicks in after a waiting period of 90 days or longer. You may choose a benefit period of 5 years, age 65 or a lifetime. The longer the period, the more expensive the policy. Premiums will vary based on gender, age, occupation, geographic location and policy definitions and riders. Rates are 30-40% higher for women than men based on risk. However, there are ways to create discounts if more than 3 people from the same employer apply. Plan on spending approximately 1-3% of your gross income to protect 60-75% of your take home pay.

It is important to work with an expert who can help guide you through the process and find the most suitable policy for your needs. Look for an independent broker who works with multiple companies instead of an agent working with only one company whose policies may or may not be the best fit for you. For more information contact Set for Life Insurance at 888-553-3559 or visit www.setforlifeinsurance.com. You’ll be glad your income is protected; it’s hard to survive without it.

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