What is your most important asset?

Many people might say their home, car, or other valuable propery, but I would like to suggest the better answer would be, "my ability to earn a living," because it's unlikely that you'bb be able to aquire a home, a car, or any other belong's without income. Futher, all of your future plans, including the ability to retire, are like based on the assumption that you'll continue to generate income. But what would happen if you were unable to work because of illness or injury? Are you prepared for a temporary or even a permanent loss of earnings?

Many people assume that income will be replaced by Social Security, Worker's Compensation, or employer sponsored benefits. In reality, however, Social Security typically covers pemanent disability, worker's compensation is only applicable to work related injuries and, if you are unable ti wokr for an extended period of time, you may even lose the benefit of employer sponsored health and retirement benefits. 

Ultimately, the burden primarily lies with you to create a "safety net" to provide replacement income should you become disabled. MAY, which is Disabiity Insurance Awareness Month (DIAM), is the perfect time to plan for such an event. Here are just a few suggestions to get your started: 

  • Protect your individual earnings. Disability insurance is specifically designed to replace a portion of your income. You can obtain an indivdual policy, enroll in an employer-sponsored group disability lan if offered, or do both.
    • Even if you already have disability insurance it's important to actively monitor and reasses the policy to ensure that your income replacement needs are met in the even of a disability.
  • Protect your business. If you are a business owner, you can secure the continued operation of your company with "Business Overhead Expense" insurance to cover expenses should you become disabled. 
  • Protect your estate. Have a trust drawn up or create a will to designate a person of your choice to take charge should you become incapacitated. 

If you already have a trust and/or will, make sure they are updated to reflect your wishes. 

Consider setting up a Special Needs trust for a disabled or mentally challenged family member to ensure the continued use and enjoyment of their property and access to essential goverment benefits to which they are entitled. 

Planning is the key in preparing for any unanticipated event, including loss of earnigns due to injury or illness. So take the time during Disability Insurance Awareness Month to investigate the available options to ensure continued income and protect your future.


PLEASE NOTE: The Morris Group does not provide tax and legal advise and for such advise consult with an appropriate professional counsel. 



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June 20, 2019 @ 01:45 PM

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