Protect Your Income
We all know that we need to protect our homes and businesses with insurance. But what about our income? After all, it is our income that provides us with the homes and cars and all of that other stuff we insure. Without an income the retirement savings and college saving quickly go away, not to mention the home and car.
According to the Health Insurance Association of America, approximately 30% of all people age 35 to 65 will suffer from a disability that lasts at least 90 days, and about one in seven can expect to become disabled for five years or more. That is scary stuff!
During your working years you are more likely to become disabled than you are to die. For a male age 35, the odds are nearly 2 to 1; for a female age 35 the odds are almost 3 to 1. To put this into perspective the chances of having a homeowners’ claim are 1 in 1200 and the chances for having an auto claim are 1 in 240.
If you were to lose your ability to earn an income for even a year or more, would you be able to pay your bills? How would you compensate for your loss in income?
The answer is Disability Income insurance. This very critical insurance pays to replace your income. Premiums usually range from 3% to 6% of your gross income depending on your age, occupation and level of income.
There are two ways to purchase Disability Income insurance. Employer paid disability income is usually provided as an employee benefit and can come in the form of short term or long term policies. The other way is when you purchase it personally. The big difference, and it’s a very important difference, is that when an employer pays the premiums the benefit is taxable. When you pay for the insurance personally the benefit is tax free. Considering that the benefit will equal 60% to 70% of your gross income you do not want to have to pay taxes on the benefit which will further reduce the amount of money your receive.
Talk to your Independent Insurance agent about Disability Income insurance. Protecting your income is too important to leave to chance.
For more information go to www.pennyinsuranceagency.com.
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