Is My Income At Risk?
Most people recognize the need for home insurance, car insurance, and even life insurance. But your biggest asset is not your car or your home; it is your ability to earn an income.
How much is your income worth to you and your family over time? The following chart illustrates the potential financial impact a disability could cause if it affected your ability to earn an income.
| Total potential earnings to age 65 assuming 2.5% annual increases | |||
|---|---|---|---|
| Age | $50,000 | $100,000 | $250,000 |
| 25 | $3,370,128 | $6,740,255 | $16,850,638 |
| 30 | $2,746,410 | $5,492,821 | $13,732,052 |
| 35 | $2,195,135 | $4,390,270 | $10,975,676 |
| 40 | $1,707,888 | $3,415,776 | $8,539,441 |
| 45 | $1,277,233 | $2,554,466 | $6,386,164 |
| 50 | $896,596 | $1,793,193 | $4,482,982 |
How would this loss of income affect your lifestyle? Do you have sufficient assets to cover your ongoing expenses?
Not many people expect to be affected by a disability, yet disabilities are a very real fact of life that can be financially devastating. The chart below illustrates the percentage of people who will become disabled for at least 90 days prior to age 65 and the average duration of disability.
| Age | % Disabled* | Average Duration** |
|---|---|---|
| 25 | 44% | 2.4 years |
| 30 | 42% | 3.2 years |
| 35 | 40% | 3.4 years |
| 40 | 37% | 3.9 years |
| 45 | 33% | 4.2 years |
| 50 | 28% | 4.7 years |
**Source: Commissioner’s Disability Table, blended 50/50 male/female and 50/50 accident/sickness