Chapter 15

Safeguarding Your Income


check Dissecting the ins and outs of disability coverage

check Figuring out the fine points of life insurance

check Taking time to get your affairs in order for loved ones

If you’re like most younger adults and in good health, you probably don’t think much about possible health changes. But you should take the right steps to make sure you protect your primary source of income in case of an unexpected health problem.

If you earn income from working, you probably need some insurance to protect that stream of income, not only for yourself but also possibly for loved ones if they’re dependent on you financially. In this chapter, I discuss the two forms of insurance — disability and life insurance — that can help you address these needs. I also discuss other simple yet powerful steps beyond insurance that you can take to get things in order for your loved ones.

Protecting Your Income for You and Yours: Disability Insurance

Disability insurance protects your income for yourself and perhaps also for your dependents. But even if no one depends on you financially, you need long-term disability insurance if you depend on your own income. After all, if you ...

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