Sunday, March 14, 2010

Disability Insurance 101


Learn the basics about disability insurance in a flash. Hear why disability insurance is so important, help demystify the disability insurance process and quickly provide you with a good understanding of important insurance terms and concepts.

Think about your largest asset. Your home, car. Most people don’t realize that those things are purchase from your income. Your income is your largest asset. Think about how much you earn over a year. Think about it over a lifetime. If you are 25 years old and earn $50K per year, you will earn $2 million in 40 years. If you factor in inflation at 3%, it will be $3.8 million, twice as high.


If your income is your largest asset, shouldn’t you insure it? You buy fire insurance just in case your home burns down, but your value of your home is less than the value of your lifetime income. You buy motor insurance just in case you get into car accident but your car is worth a minor percentage of your lifetime income.

You have insured all the golden eggs in your life, but have you insured the golden goose? Disability insurance insures the goose.

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