You’re working hard to prepare for the future. But how would your life change if you suddenly became too sick or hurt to work and your paycheck went away?
Take a minute to think about all the things your income provides. Your list might include supporting your family, saving for a college education, and preparing for retirement. Those important financial goals won’t just go away if you can’t work because of an illness or injury.
And although you may not want to think about becoming sick or hurt, it happens more often than you think. That’s why insuring your income could be one of the most important things you do.
Because when it comes down to it, your ability to work and earn an income is the asset you rely on most.
Your lifetime income Consider how your lifetime earnings compare to other things you’re probably protecting with insurance – like your car and home. Your lifetime income is worth so much more, yet it often goes unprotected.
That’s why many people consider individual disability insurance. It works differently than homeowners insurance, but the concept is similar. If you can’t work and earn an income, it pays a monthly benefit directly to you, much like a paycheck. That helps you pay everyday expenses — big and small.
If you’ve already got employer-provided benefits, such as group long-term disability insurance, that’s a great start. But is it enough? In general, it covers about 60 percent of your gross income, or as little as 40 percent after taxes. That helps, but may not be enough for you to keep up your lifestyle and financial goals.
A separate individual disability insurance policy is a great way to fill potential gaps in protecting your income. It’s one of the most common components of a strong financial plan because it’s so important. Experts agree: That small investment today helps ensure you and your family are taken care of if the unexpected happens.
Learn more about your potential income protection gaps at www.principal.com.
Disability insurance has exclusions and limitations. For costs and complete details of the coverage, contact your Principal representative. Insurance issued by Principal Life Insurance Company, Des Moines, IA 50392.
CPA does not provide tax or accounting services on behalf of the companies of the Principal Financial Group®.
Peter Watson is a Financial Representative of Principal National Life Insurance Company and Principal Life Insurance Company, and a Registered Representative of Principal Securities, Inc. Securities offered through Principal Securities, Inc., (800) 247-1737, Member SIPC. Principal National (except in NY) and Principal Life are issuing insurance companies of the Principal Financial Group®. Principal National, Principal Life and Principal Securities are members of the Principal Financial Group, Des Moines, IA 50392. Watson Wealth Management is not an affiliate of any company of the Principal Financial Group. Peter can be reached at (800) 846-2250. www.watsonwealthmgmt.com
