Few people realize that their most valuable asset is their ability to earn an income. Like any asset it is important to obtain the necessary protection on that asset. With this mind set, any unforeseen events which may endanger one's ability to earn a paycheck need to be accounted for. Fortunately, such protection is available in the form of Disability Income Insurance (DI). The purpose of disability insurance is to replace all or a portion of the lost income incurred should you become disabled and unable to work. Income received from a DI policy can be used for a wide range of needs: mortgage payments, daily living expenses, educational expenses, medical bills, or insurance premiums, etc.
Disability Income Insurance is a critical component of every sound financial plan. It is important to understand that Social Security does not provide an adequate form of protection. "Only 39% of Social Security disability claims are approved and when approved the average monthly payment is only approximately $1,000." - Social Security Administration. The lack of support provided by social security leaves the responsibility of obtaining income replacement protection in your hands.