By Kathryn Mueller, CLU, ChFC, FIC, LUTCF, insurance advisor
If you asked a group of people, “What is your biggest asset?” the responses typically would include homes, land or vehicles. What many people don’t realize is that their biggest asset is their ability to earn an income! For example, a 30-year-old physician earning $200,000 per year will earn $7.4 million by the time he or she is 67. Isn’t that an asset worth insuring?
To provide some perspective, according to the National Safety Council, in one year:
- One in 106 people die.
- One in 88 have a house fire.
- One in 70 are involved in an auto accident.
- One in eight suffer a disability.
All of these events undoubtedly will result in a loss of income, and while most people already have life, home and auto insurance, many fail to purchase disability insurance. Yet in the event that a long-term illness or injury prevents them from working, disability insurance may be a family’s only protection against financial ruin.
So when should you buy disability insurance? As soon as you can! If you buy disability insurance with a non-cancelable policy when you are younger, you’ll lock in the most favorable rate, and the premium and policy will stay the same throughout your life. You can also add future income options that will allow you to increase your policy with no further medical underwriting. That way, even if your health changes, you will be able to add to your policy by simply providing documentation that your income has grown.
In upcoming blog posts, I’ll discuss various aspects of disability insurance in detail to ensure you’re buying the best insurance product for your needs and income. And when you’re ready to take the next step in securing your biggest asset, contact a Wisconsin Medical Society Insurance agent.
The views and opinions expressed in this blog are solely those of the author and do not necessarily represent the views of the Wisconsin Medical Society, Wisconsin Medial Society Holdings Corporation or its subsidiaries. Nothing in this blog should be construed as legal, financial or clinical advice.