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You’re thinking about your house, right?  Let’s take a look at something else: multiply your annual income by the number of years you expect to continue working (let’s use age 65 as a retirement age).  Now ask yourself, What is your biggest asset?  Most people will now say their ability to earn an income is their biggest asset.

Back to the original question; IS YOUR BIGGEST ASSET INSURED?  The two ways to insure your income are protection against disability (disability income insurance) and protection against premature death (life insurance).

By law, you must have insurance on your car to drive.  If you rent an apartment, chances are your landlord requires you to have renter’s insurance.  If you own your home and have a mortgage, your lender requires you to have homeowner’s insurance.  The government may soon mandate that you have health insurance.  If you are a business and have employees, the law requires you to have worker’s compensation insurance.

Life insurance and disability insurance aren’t required by law, but I think you’ll agree that in order to afford our cars, our homes, pay our bills, support our family, we have to have a regular stream of income (employment) to pay for those things.  What if that stream of income disappeared?  If you were sick or injured and couldn’t work, where does the stream of income come from? Do you think your expenses will go up or down at that point? (Usually UP!)  If you were to pass away prematurely, what will replace your income?  In most two-income households, both people work because they need the income to live.  What if one of those disappears?  In this case, expenses could slightly decrease with one less person driving, eating, etc, but most of the big bills still exist (mortgage, utilities, taxes).

Disability income insurance protects your income (typically up to 60-80% of your monthly income) should you be unable to work due to sickness or injury.  Life insurance pays out a lump sum death benefit should you pass away.

If you have people that depend on your income besides you, you most likely need life insurance.  If you’re single and have debt (student debt, credit cards, mortgage, vehicle loan), you may need life insurance to cover those debts.  If you are single and just rely on your own income, what happens if you get sick or injured and are unable to work?  Disability income insurance protects your income and ensures your paycheck comes every month to help you pay your bills.

Call Tom Manno today to schedule a meeting to review your disability and life insurance needs.  Your family will thank you!