Disability Insurance: Protecting Your Income

Scott McEachern |

I was at the mall over the Christmas holidays and ran into an old friend from my college days. Here’s how the dialogue broke down:

Me: Hey! Haven’t seen you in forever, how’ve you been?

Friend: Things have been great. Since graduating, I started my own business and things are really rolling now.

Me: That’s awesome! Once the holidays are over and family things slow down, we should reconnect and catch up.

Friend: That sounds good in theory, but I’m just heading into peak season and I’ll be super busy.

Me: Good to hear. I’m super glad that you are very busy and I don’t want to turn this into a pitch, but it’s what I do for a living – have you given thought to what happens to your business if you become sick or disabled during your peak season? What would happen to your income and clients?

Enter: Disability Insurance

It happens more often than we think. Approximately 1 in 4 of today’s 20 year-olds will become disabled before they retire, according to the US Social Security Administration Fact Sheet. If you’re curious what that chances of becoming disabled are based on your age, job type and a few other attributes, you can look into that at www.disabilitycanhappen.org

If you’re a new entrepreneur, you’re likely the sole income earner in your business. If you become disabled, bills still need to be paid. Think not only about the business expenses, but personal expenses, like your mortgage and groceries, as well.

Income Protection

Disability insurance should be put in place to provide an income in the event you become sick or injured and cannot perform your job duties to earn an income. Most people avoid getting disability insurance because they assume the cost is too high, but just like any other insurance, it can be completely tailored to fit your budget. You can select different waiting periods, different payout periods, and different definitions of the qualifying disability.

A lot of insurance agents only talk about life insurance in case of death, and while life insurance is important, disability is much more likely to occur than death (and that’s why the premiums are more expensive than life insurance).

If you have a job or own a business, the risk of losing your income is the biggest risk you face, especially if you currently have no savings!

Give us a call for a no obligation quote on disability insurance today 705 733 9385.