Protect your most important asset

Introductory remarks:

The purpose of this blog is to help prospective and existing clients, and advisors understand this area of insurance: an area that many find complicated, confusing, and just plain difficult. It is an area where I have worked for many (try 40) years and a topic that I am very passionate about. I will address why I am so passionate about this topic at a later date. For now, let me introduce the topic and encourage questions, comments, suggestions, and most of all participation.

Before I start the “hard” part, let us look at what Disability Insurance really is. "Why is Disability Insurance important and why should it be included in a financial plan?” The answer to that question prompts another question: “How important is my income to my financial plan?” If your answer is that your income is not important, that you are so financially well off that your income is insignificant to you, then Disability Insurance is truly not an important issue in your life.

If, on the other hand, you are like most and your income is significant to you, then you should seriously consider protecting it. Most of us feel that we need life insurance to protect our families and businesses during our “growth” stage – while we are building and accumulating to reach our goals, be they financial, professional, personal, etc. If we die while our children are still at home, and before we have built our “nest egg,” then we need life insurance to cover our outstanding mortgage(s), provide for our children’s education, or for whatever purpose we feel is important.

While I will not attempt to lessen the financial and emotional impact of death, a disability is far more devastating financially. If I die my income dies with me and needs to be replaced, however, my consumption also dies; I no longer eat, require clothing, or create additional expenses. If I am disabled, my income dies, or is reduced, but my consumption continues and may even increase due to medication, special equipment, etc.

Our most important assets are not our home(s), our savings or investments, or our car(s); our most important assets are both our health and our ability to generate an income. All that we do is dependent upon them.

The purpose of this blog is to provide a simple explanation of Disability Insurance - a product which protects our most important assets. I want to explain what "disability" means. (We all know what "death" means - but disability needs to be defined).

Now, I will endeavour to make this fun, and certainly interesting and informative. If you have any questions please ask. The value of this blog is significantly linked to the level of participation

Click these for more information on the respective topics :
Long Term Care Insurance
Disability Insurance
Critical Illness Insurance
Life Insurance
Mortgage Insurance