Personal Finance in Your 20s & 30s For Dummies, 3rd Edition

Chapter 15

Safeguarding Your Income

IN THIS CHAPTER

Dissecting the ins and outs of disability coverage

Figuring out the fine points of life insurance

Taking time to get your finances 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 problems. And why should you?! You can and should enjoy your youth and hopefully being and staying healthy.

But, through no fault of your own, or because of bad luck, you might experience some health challenges. It’s also possible that like plenty of other folks some aspect of your lifestyle may contribute to a health issue for you. So, you should take sensible steps to make sure you protect your primary source of employment income in case of an unexpected health problem.

If you are dependent upon the income you get 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 ...