Disability Insurance 17-why is Important to Have Disability Income Replacement Insurance


by Kyle J. Norton - Date: 2008-10-11 - Word Count: 399 Share This!

Since income earned from employment is the foundation of most people's financial well-being.Income replacement insurance is a vital part of business owner as well as working people as it allows the continuation of income in case of accident or sickness. Consultants/contracted employees and professionals, such as lawyers, doctors, dentists,etc are more vulnerable to income disruption if they suffer from disability because of specialty of their occupations and replacement for their work is hard to find.
Here are 12 questions that you should ask yourselves, if you can not find any of solution, then income replacement accident and sickness insurance is the best to consider.


1. What would happen to your business if you had to take 6 months off due to illness or injury? or may be longer.

2. How would you pay these if you were unable to work due to illness or injury.

3. 1 in 70 motor vehicles involved in an accident cause disability, injury or death.

4. Over 4% of all mortgage foreclosures are a result of the death of the major breadwinner. On the other hand, 48% are a result of a disability of the major breadwinner.

5. 1 in 8 people will become disabled.

6. How much money will you and your family need when you become disabled?

7. Where will that money come from if you suffer from accident or sickness?

8. Where would the money come from to pay for the expenses listed above should you be involved in an accident or became so ill that you could not earn an income?

9. Do you know that if if you save 5% of your income each year - a total disability that lasts 6 months could wipe out 10 years of savings.

10. Can you pay all these expenses on just your spouse's salary? Are you using both salaries to pay your expenses or are you putting one complete salary away in investments or savings?

11. How likely is it that you will get fair market prices when you are forced to liquidate quickly? Is this the reason you acquired those assets?

12. If your spouse is not already working, how quickly can they enter the workforce and earn the same income you were earning?"
Income Replacement Insurance is the cornerstone of a sound financial plan. Self employ people should aware of their income replacement needs.

I hope this information will help. If you need more information of the above subject, please visit my home page at:


Related Tags: insurance, business insurance, disability insurance, disability, unemployment insurance

I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

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