Insuring Your Earning Power

Ask any financial planner or insurance agent what the most neglected or underinsured financial risk is, and they are likely to say the risk of losing your ability to earn a living. Most individuals simply do not give sufficient attention to this possibility and, if they do, believe that they are adequately covered. In other words, they believe they will never lose their earning power. However, according to the Commissioner’s Individual Disability Table A, one in three working Americans will suffer some form of disability that lasts at least 90 days before they reach the age of 65. In addition, one in seven employees will be disabled for five or more years prior to their retirement. You are two to three times more likely to become disabled during your working career than you are to die during this same period. These are impressive (and somewhat frightening) numbers.