Coming Out Ahead When Losing Your Ability To Earn An Income

Nobody wants his or her income to be taken away.  If we had total control over our future, like a crystal ball, we would never worry about money vaporizing one day. One in three people will lose their ability to earn an income prior to the age of 65. The fact is, we do not know what can or will happen to us.  Life can change in a moments notice and your income and your future could dry up really fast.  Are you prepared?

If you become too sick or hurt for an extended period of time, how long will your employer keep you on the payroll?  After all of your sick days and vacation days, your employer will most likely stop paying you.  It’s the facts of life and many avoid thinking about the possibilities. 

If you are an owner or key executive of the business, listen up.  At some point you will need to replace yourself or your salary in order to keep the business alive. The business will become a squeaky wheel until something is done.  Some people are in a position to take a leave of absence from the business and still maintain revenue and income.  However, many cannot and need to protect the income; business revenue.

Even some businesses, such as a manufacturer, have employees producing on the assembly line, could still have problems producing at the same level.  The team of employees can only produce at the same level with the quality leadership the owner/employer has put in place.  All of that will change when you (or quality management) are no longer there to make sure things are running smoothly.

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It is common knowledge that illnesses do not discriminate.  It can happen to you, your spouse, family members and employees of the company.  Or even some injuries can be prevented, however, we are human and accidents do happen.  One quick misstep and you are laid up for weeks, or even months.  

Your income will dry up real fast.  The savings accounts will start to drain and tapping into the retirement account could be costly on taxes and penalties.  Savings and retirement accounts now become the source of income until either you go back to work or the money dries up completely.

Disability insurance is one way to protect your income.  Most people take out insurance policies to protect what is important to them:  Buy a car, you get insurance - 1 in 240 chance of a major accident; buy a house, you get insurance - 1 in 1200 chance of a total loss; buy life insurance to replace income from a lost loved one - 1 in 5 result in premature death prior to age 65.   For many, their number one asset is their ability to earn a living but they never put insurance on that.  With one in three chances of losing your ability to earn an income, it should be a high priority.  Why do people avoid it?  

Simple… The fear of having no income is not great enough until it is too late.  You may not have a second chance.

Butch Zemar