You probably insure your home, your car and other personal assets. But what about the income that creates those assets? If you had a goose that laid golden eggs, which would be more valuable to insure? Would it be the source (goose) or the result (eggs)? Obviously the goose, since it produces the eggs. You produce an income that allows you to purchase assets and provides you with a certain standard of living. Generally these assets are well protected (home, car, etc.). If due to an accident or sickness, however, you lose your income, how would you replace your ability to earn that income?
During the course of your career, you are three and a half times more likely to be injured and need disability coverage than you are to die and need life insurance (HIAA, 2000). More bankruptcies and home foreclosures are due to disability than the death of a breadwinner. Disability insurance protects your income and your lifestyle while providing added security and recovery support.
Potential Earnings to Age 65 (assumes 3% salary increase)
Age $100,000 $150,000 $200,000 $250,000
35 $4,900,000 $7,350,000 $9,800,000 $12,250,00
40 $3,760,000 $5,640,000 $7,520,000 $9,390,000
45 $2,770,000 $4,140,000 $5,540,000 $6,920,000
50 $1,916,000 $2,873,000 $3,832,000 $4,789,000
Ask Yourself These Questions
If I experience an accident or sickness…
… how will I replace my ability to earn that income?
…how will the fixed expenses of my business or practice be paid?
… can my business interest be purchased by another party?
…will contributions to my retirement plan continue?
…if a key employee is disabled, can I afford to pay both his salary and his replacement’s salary?
Your Arbor Group professional not only asks these pertinent questions, but helps you find solutions to successfully answer them by sorting through the maze of insurance companies, products and policy provisions.