If someone were to ask you, “What is your greatest material asset?” how would you respond? Most people respond, “My house is my greatest material asset.” Until recently, I, too, responded this way. However, there is another material asset even greater than our house. Believe it or not, our greatest material asset is our paycheck. If you were to multiply your annual salary by 10 years, would this sum exceed the value of your house? For most of us the answer is a resounding, “Yes!”
It is for this reason that protecting your paycheck needs to be high on your list when it comes to insurance. You can and need to protect your salary in two ways: 1) By way of a Disability Policy, and 2) by way of Life Insurance.
- Disability Insurance: Statistically speaking, more people are affected by some form of disability during their working years than that are affected by death. Disability policies can keep you afloat if you were to ever have to miss work for a prolonged period due to an accident or illness.
- Life Insurance: The rule of thumb regarding using life insurance to replace income is to multiply your salary by a factor of 10. So if my salary is $50,000, I would need $500,000 worth of life insurance to replace my income. Remember, the proceeds of a life insurance are not taxable!
Call me today so that we can discuss the protection of your greatest asset, your income!
H. Darrell Watson State Farm: 770-910-3399 – Office or darrell@rup3prepared.com
