What would you say is your most valuable financial asset? For most people of working age, the answer isn’t in their golden eggs but in the goose that laid them: Their most valuable asset is their ability to earn money.
That’s why one of the most devastating events that could befall a household is when a breadwinner becomes disabled for an extended period and can’t earn any money.
So personal-finance experts and consumer advocates try to hammer home the importance of long-term disability insurance, which pays a portion of your income if you’re disabled through illness or injury.
Payments are often equal to 60 percent of income, which isn’t full replacement of income but can help many households get by. Those with incomes in the six figures can hope for income replacement of perhaps half or less.
The easiest and least expensive way to get coverage is through an employer’s group plan. If your employer doesn’t offer it, try trade or professional associations or small-business organizations. Sometimes, you can get it through a bank or credit union in association with a loan you have. Failing those options, you can buy an individual policy, often through a broker. Gregory Karp, Chicago Tribune
