What is your number one asset? (A) Home, (B) Car, (C) Another valuable possession (D) None of the above.

The answer may surprise. Drum roll…if you guessed (D) None of the above, you guessed right.  Your most valuable asset is your ability to earn an income.  In order to provide food, clothing, shelter, transportation and other necessities and luxuries for you and your family, you need an income to pay for it. By the way, your income is your most powerful wealth-building tool–but that’s another topic.  

If you become disabled and cannot work, will you have enough money to buy food, make the house payment, keep the lights and other utilities on, pay the car note and put gas in the car? Statistics show that roughly 40 percent of all foreclosures are the result of a person becoming disabled. Long-term disability (a disability generally lasting 90-days or more) is more devastating on a family’s finances than death. In the event of death there are no ongoing expenses associated with the deceased. When a loved one becomes disabled, a family incurs additional expenses due to the cost of providing care to the disabled person while at the same time they lose the income once provided by the person who is now disabled. Most of us understand the negative effects that death has on a family’s finances. Therefore, many people have life insurance in place (although most are under insured). However, people tend to underestimate the need for disability insurance. As a result, a large percentage of people don’t have disability insurance. Of those who do have disability insurance, far too many have skimpy coverage.

You’re 12 times more likely to become disabled than you are to die over a 30-year working career.

About half of all employees will have a disability that will last at least 90-days. One out of every 10-people can expect to be permanently disabled prior to age 65.

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