Tips for Insuring Your Salary

You hear it all the time, most American’s are only 3 paychecks from being broke. That includes high net worth individuals and households below the median household income. The fact of the matter is when things change and they will change will you be ready. No one knows when they will take sick, be forced to take early retirement, or loose a spouse unexpectedly. These things have significant impacts and your monthly income and can change your families financial position immediately.

Life Insurance is the number one insurance most families think of when thinking of covering your salary. But remember even if you make $50,000 a year. A $250,0000 policy which people typically purchase without doing the real loss of income calculation will only cover the lost income for 5 years. After that then what?

workers comp & long term care insurance can cover a portion of your salary if your still living. But what about the new expenses due to your condition? What about the difference between what you where making and what you are making now. Those things require further research to find out if there a way to protect yourself in these cases.

Health care supplement, Sure doesn’t sound like it will add to your income. But anything that reduces your expenses, especially for cost that can be rather large is like replacing your income. Remember $100,000 health care bill covered at 70% leaves you holding the bill for $30,000.  At $50,000 unless you have no other expenses your won’t be able to cover that bill.