Most of us feel we are doing fine if we have the four horseman of the insurance industry covered: health insurance for our physical needs, auto insurance for when we drive, home/renter’s insurance for our property and life insurance to provide for our family in case of a death. Beyond these four we think insurance products are unnecessary and a waste of money.
You might want to check that negative sentiment while you read this post. While all four of those are important, they aren’t the end-all to insurance products. In fact, disability insurance, the one many people forget about, could be the most important coverage you buy. Here’s why.
The big reason you need disability insurance is that your income is the #1 tool for generating wealth. If for some reason you cannot earn that income your chances of being able to adequately care for yourself and your family decrease dramatically. A loss of income jeopardizes your present needs and your future financial goals. So unless you have substantial savings and investments to cover the time where you are out of work, disability insurance is your best bet to manage through the difficult times.