December 4, 2007

What is your most important asset? - It's not your home.

Your ability to work and earn a living may be your most valuable asset. Would you be able to maintain your standard of living if you were too sick or too hurt to work? Probably not. According to Business Almanac, most people's savings wouldn't cover six months' worth of expenses.

If you are in an accident, become ill and cannot earn a paycheck, how will you pay your mortgage, car payment, utilities, and living expenses? Most Americans are financially prepared for death, but they have not prepared for the possibility of not being able to work. Yet, the probability of becoming disabled and unable to work between the ages of 35 and 65 is significantly higher than dying.

Disability strikes one in four workers before age 65. The financial repercussions of disability can be disastrous. According to the US Department of Housing and Urban Development, 46% of conventional mortgage foreclosures were attributed to disability and only 2% to death.

That's why disability income insurance is one of the most important parts of any financial plan. It can help assure that you and your family will have the income you need to live on--and that your retirement savings will continue to grow. Experts advise consumers to be prepared to pay 2-4 percent of your annual income in premium payments. The younger you purchase this benefit, the less expensive it will be.

Look for more upcoming information discussing disability insurance.