Let’s face it…it’s all about love, do you agree? If not, then no need to read any further.
So if it’s about love, and love is about others, shouldn’t we strive to protect the ones we love the most to the fullest of our ability? We do a good job of financially supporting our immediate family, and sometimes that support is expanded to extended family members and others we are able to help when we can if we have the resources. And so for those you love and do support financially, YOU are looked up to and counted on to provide for them. After love our income is everything. Our income affords us to be that loving parent, child, friend, person, and provider. However, as human beings, we are also vulnerable to the “what-if’s” of life. Life’s little and BIGGEST curveballs that could be thrown at us at any given moment. Please know, I am not a doom and gloom person, I consider myself an optimist. I do hope and believe that each of us will live a very long, healthy, and rewarding life. Most of us will, yet some will not. So I ask…is your income, which is the fuel to provide for yourself and others, as best protected as possible? Do you even know what your “capacity” is for income replacement? Would your family and loved-ones be financially OK if something were to happen to you? If your health was compromised or should the worst occur, what is the true financial impact it would have on those who are counting on you? Are you 100% clear (and comfortable) on these questions? If you are not married or have no children or others to protect, than the need for life insurance is greatly reduced. However, protection against loss of income due to a long-term sickness or injury is essential to cover monthly living expenses.
Let me ask you a personal question…”what is your biggest asset?” Stop and think about it for a second. If you answered your home, or your savings/investment accounts I disagree. YOU are your biggest asset. Your ability to get up every day, go out into the world and create/generate an income stream. Your earning potential is your biggest asset.
Income protection can be secured it two forms, long-term disability insurance & life insurance. Most smart, upwardly mobile business professionals & executives have some level of coverage, either as an employee benefit at work or personally owned. However, I know (from doing what I do for a very long time) that the level of protection in place by the majority is typically far below the proper amount that would be needed to sustain current cash-flow and lifestyle, and for most life would be turned upside-down.
Also, there is a maximum capacity of protection we can each have based on our current income, as a multiple or percentage thereof. What I will tell you is that even at maximum capacity you cannot fully replace your current income through either disability or life insurance. You can however get as close as possible, and that would be a great deal better than an amount less or zero.
We insure our cars, our homes, our businesses, our health, and our personal liabilities, but the vast majority of us simply do not do a very good job of properly protecting our biggest asset…ourselves. Which in turn exposes our most prized possessions (our loved-ones) to the potential loss of why we are all working so hard to begin with…income & cash-flow.
I recommend that you review your personal income protection options and discover your maximum capacity for coverage, and what the effective yield would/could be for those you are currently supporting, including yourself. For after love, our earned income allows for just about everything else…
Fred Kettler, Financial Coach
Kettler Financial – Serving the Greater Miami Community
Coral Gables – Pinecrest – Coconut Grove
1560 S. Dixie Highway Coral Gables, FL 33146
Securities products and advisory services offered through Park Avenue Securities LLC (PAS), member FINRA, SIPC. OSJ: 14021 Metropolis Ave., Fort Myers, FL 33912. 239-561-2900. PAS is an indirect, wholly-owned subsidiary of The Guardian Life Insurance Company of America® (Guardian), New York, NY. Kettler Financial is not an affiliate or subsidiary of PAS or Guardian.
2017-36377 Exp 03/2019