You have worked hard to get to where you are now financially, generating current income and/or accumulating a portfolio of savings and investments. Does it not make prudent sense to protect at least a portion of your hard-earned savings from potential losses (risk), as well as protect your personal income?
Personal Liability Umbrella Coverage
While trusts and other legal structures can shield some assets from the court’s reach, precaution suggests choosing umbrella liability coverage at least equal to your current net worth and present value of your employment income stream. Umbrella coverage typically costs only a few hundred dollars in annual premium per million dollars of coverage, and the cost decreases as the coverage amount increases. The increased expense can often be offset by increasing deductibles on your home and automobile policies.
Disability Income Protection
YOU are your most important asset, not your home or your 401(k) retirement account balance, YOU are. We (and our families) count on our incomes to provide the necessary cash-flow to pay for all monthly essentials, expenses and any extra cash for savings or for having fun. Properly protecting your income with long-term disability insurance is probably the most valuable and most important type of protection you could (should) purchase and secure if you want to assure that you could maintain a similar lifestyle to that you are currently enjoying.
While we are living longer as a society, premature death can (and does) happen to a small percentage of the population. Whether from sickness or an accident, our precious life can be taken away in an instant. As an income replacement tool or for wealth preservation (to pay estate taxes), life insurance offers tax-advantaged immediate liquidity & wealth replacement. Term-Life is a temporary, 10/20/30-year solution, while Permanent Life Insurance (when properly designed) provides a lifetime of coverage… forever!