Most people rely on their income for far more than they realize. When asked "what is your most important asset?" most will reply that it is their car, home, or retirement stock portfolio. But consider how most people buy these items: for a home they borrow money and pay it back over time, and for a stock portfolio they plan to contribute a percentage of income over time. Both rely on the assumption that their income will continue indefinitely.
But economic conditions change and people lose jobs, or they get sick or hurt and become unable to work. When either situation arises, their ability to make mortgage payments, or continue to fund their retirement fund takes a big hit. While there is little an individual in the U.S. can do to protect against changes in the economic landscape, you can protect your income in case of illness or injury. Disability insurance coverage is your income protection answer.
Borrowing is a Way of Life
In the U.S. borrowing money to buy things today and paying it back tomorrow has become a way of life. Nearly sixty percent of U.S. households live check to check, meaning they have little or no money in savings, or could be spending more than they earn. We use borrowing to make up the deficit, expecting that at some future point our incomes will increase. The borrowing comes in the form of car payments, mortgages, and credit cards.
Very Little Cushion
Financing our lifestyle with credit works out okay as long as our income continues. But with very little cushion, we leave ourselves open to financial ruin when disruptions occur. This is why income protection is so important.
Your health and ability to earn an income may be your most important asset. You buy car insurance to protect your car in case of an accident, and home owners insurance in case of fire and other damage. Your ability to make your car payments and mortgage payments rests in your ability to work and earn an income.
Disability insurance coverage replaces a portion of your income should you become sick or injured, and helps you keep your car and home during difficult times.
At any moment, something unexpected can happen that can alter a person's life for weeks, months, years, or forever. This event may be tragic and sudden, or be expected and come on gradually. Either way, it will undoubtedly affect them and their entire family on a daily basis and will cost time, money, and overall energy. One may wonder what can be done to protect them in the future when it is unknown...
One very effective, practical, and affordable thing one can do is purchase disability insurance. Disability Insurance is a policy an individual or company can obtain that provides supplemental income to a person (usually between 40-60%) in the event something unfortunate occurs, such as an injury or illness, which prevents them from working. This can include sick leave and short or long-term disability benefits.
Here are a few benefits of Disability Insurance:
It's Tax Deductible: Premiums purchased by an individual are often permitted to be deducted as a business expense. If an employer provides this benefit for employees and pays the premium, it is fully taxable, as well as tax deductible.
It Provides Rehabilitation: If an individual cannot perform their previous career duties, new training will be provided as a benefit so the person can learn new skills and obtain employment and income.
It's Refundable: If after the age of 65, one has never fallen victim to illness or injury and never had to use their benefits, some policies are partially or fully refundable. In this case, the premiums paid over the years would be refunded to the individual that paid them.
According to the National Safety Council, a disabling injury occurs every second in the United States! So, protect yourself and your loved ones with Disability Insurance.
Ted has been in the financial industry for the better part of 11yrs, helping people invest in stocks and bonds and helping people purchase real estate and refinance their properties.
He has been a financial advisor since 1996, and have been heard on AM1000 weekly financial talk radios and has been a noted speaker on many financial topics ranging from the benefits of adding seasoned trade lines to long term stock and bond investing.
But economic conditions change and people lose jobs, or they get sick or hurt and become unable to work. When either situation arises, their ability to make mortgage payments, or continue to fund their retirement fund takes a big hit. While there is little an individual in the U.S. can do to protect against changes in the economic landscape, you can protect your income in case of illness or injury. Disability insurance coverage is your income protection answer.
Borrowing is a Way of Life
In the U.S. borrowing money to buy things today and paying it back tomorrow has become a way of life. Nearly sixty percent of U.S. households live check to check, meaning they have little or no money in savings, or could be spending more than they earn. We use borrowing to make up the deficit, expecting that at some future point our incomes will increase. The borrowing comes in the form of car payments, mortgages, and credit cards.
Very Little Cushion
Financing our lifestyle with credit works out okay as long as our income continues. But with very little cushion, we leave ourselves open to financial ruin when disruptions occur. This is why income protection is so important.
Your health and ability to earn an income may be your most important asset. You buy car insurance to protect your car in case of an accident, and home owners insurance in case of fire and other damage. Your ability to make your car payments and mortgage payments rests in your ability to work and earn an income.
Disability insurance coverage replaces a portion of your income should you become sick or injured, and helps you keep your car and home during difficult times.
At any moment, something unexpected can happen that can alter a person's life for weeks, months, years, or forever. This event may be tragic and sudden, or be expected and come on gradually. Either way, it will undoubtedly affect them and their entire family on a daily basis and will cost time, money, and overall energy. One may wonder what can be done to protect them in the future when it is unknown...
One very effective, practical, and affordable thing one can do is purchase disability insurance. Disability Insurance is a policy an individual or company can obtain that provides supplemental income to a person (usually between 40-60%) in the event something unfortunate occurs, such as an injury or illness, which prevents them from working. This can include sick leave and short or long-term disability benefits.
Here are a few benefits of Disability Insurance:
It's Tax Deductible: Premiums purchased by an individual are often permitted to be deducted as a business expense. If an employer provides this benefit for employees and pays the premium, it is fully taxable, as well as tax deductible.
It Provides Rehabilitation: If an individual cannot perform their previous career duties, new training will be provided as a benefit so the person can learn new skills and obtain employment and income.
It's Refundable: If after the age of 65, one has never fallen victim to illness or injury and never had to use their benefits, some policies are partially or fully refundable. In this case, the premiums paid over the years would be refunded to the individual that paid them.
According to the National Safety Council, a disabling injury occurs every second in the United States! So, protect yourself and your loved ones with Disability Insurance.
Ted has been in the financial industry for the better part of 11yrs, helping people invest in stocks and bonds and helping people purchase real estate and refinance their properties.
He has been a financial advisor since 1996, and have been heard on AM1000 weekly financial talk radios and has been a noted speaker on many financial topics ranging from the benefits of adding seasoned trade lines to long term stock and bond investing.
