People usually first think about their car, home or anything else material and expensive, when it comes to things that they are getting insurance for.  But usually, they fail to realize that all these thing actually come from their income, until someone asks them or reminds them.  That is actually the first purpose of this post—to remind you that your income is typically your largest asset.

If you can pause for a while and sit down on computing how much you would earn over your entire lifetime based on how much you earn every year, you’ll find out that you will have actually made millions of dollars.  For example, if you earn $50,000 per year and you are 25 years old, in a 40-year period, you will earn $2 million, and that’s without any sort of inflation.  And if a slight inflation does take place anytime within the said time period, you could earn twice as high.  So why not insure something that is undoubtedly more valuable than practically any of your most prized possessions right now?

Still not convinced? Imagine how long you would last without a paycheck.  How many years would it take before it becomes difficult for you to pay for your day to day expenses?  What, years?  We say, only weeks or days! Based on the study conducted by LIFE (Life and Health Insurance Foundation for Education) Foundation, 70 percent of working Americans couldn’t make it 1 month before financial difficulties would set in. More than 1 in 4 Americans wouldn’t make it a week.

Just think about what would happen when disability occurs, and the reality is actually much worse than fantasy.  But with disability insurance, you will get that peace of mind just in case of actual disability, that your family will have a source of replacement income to help make ends meet until you’re back on your feet.