January 4, 2011

Disability Insurance- do you get it?

A quick but informative story from one of our agents at Quotebroker Insurance Services:

I had a conversation today with a prospective client who had been told he should look in to disability income protection, but he just didn't "get the point" of the coverage. I thought it may be helpful to give the 60 second guide to Disability Income Protection.

Disability income protection insurance does exactly that- protects your income.  This type of insurance is lifestyle protection- It protects everything you do- the car you drive, the house you live in, the restaurants you dine in.  If you were injured and couldn't work, imagine the lifestyle changes you'd have to make.

But at what cost?  On average, Disability Income Protection insurance will cost you 3% of your gross income yearly.  So if you were offered a job at $100,000 yearly and if you become sick or disabled you would be offered "Best Wishes" from your company or a job that offered $97,000 yearly and if you were to become similarly disabled you'd received about $60,000 yearly- which would you take?

It's a no-brainer, but many forgo the opportunity to purchase this vital product until it is too late.  As with most insurance products, the costs rise as you get older so purchasing a policy sooner rather than later is in your best interest.  Protect what you have now or give up all you have later.