The Importance of Protecting Your Income

The Importance of Protecting Your Income


Are You Exposing Your “Achilles Heel”?  Women… This Is Especially Critical for Us!

Please give a warm welcome to our newest guest blogger, Christen Berman. Some of you may know her from our Longevity Planning for Women Forums, or may have heard her name mentioned as our next guest speaker for our upcoming July Smart Women 20/10 webinar, but what she wants to ask you is - do you know the importance of protecting your income? Here's why it's so important for us to know!

One of the first things I always ask when I first sit down to talk with a client about building their financial fortress is: "Do you have an income protection plan?”  Why? Because nothing happens without income!

The truth is, in order for you to be “bullet proof”, you need a plan for one of the most commonly ignored forms of protection… paycheck protection.

While you think it will never happen to you, have you thought about:

  • Who would pay your bills if you were too sick or hurt to work?
  • Could you rely on family members to support you?
  • How long could you live off your savings? 


Now consider this:

  • Did you know “disability insurance” is the most commonly used type of insurance after health insurance…. especially in California!
  • There is a 1:4 chance of experiencing a disability that will interfere with your ability to work for at least 6 months during your working career.
  • The average Long Term Disability (LTD) claim is 2.6 years!
  • The majority of new LTD claims are women.
  • The most common age of disability currently is during the years between ages of 50 through 59… how many of us are at that point in our career?

Interestingly, most people tend to greatly underestimate the likelihood of needing income protection. Furthermore, many believe that that if they become disabled, it will be as a result of being in an accident.  But the facts paint a very different picture. As it turns out, illnesses and/or diseases are the primary reasons why individuals end up on disability.  Here's a list of the top culprits:

  • Musculoskeletal system and connective tissue disorders (think back, neck and chronic pain) remain the leading cause of new and on-going claims.
  • Cancer is now the second leading cause of new disability claims. (Read about a real world scenario here!)
  • Heart Disease and Strokes are now a leading cause of disability.
  • Injuries (Accidents) and Poisoning are surely on the list, but not at the top
  • Mental/ Nervous (think anxiety, depression etc.) create their share of claims
  • For women, 10.6% of new claims are related to pregnancy and childbirth.

So, my point is, most incidences of disability come from illnesses and not accidents….. and with disability affecting women far more than men, we need to make sure we have a plan. Most often it takes only about 1.5% - 2% of your income to protect your paycheck. Talk to us about how to protect yours… because, “the greatest wealth is peace of mind”!

About Our Guest Blogger

Christen Berman serves as our go-to external Insurance Professional for UWM clients and has been an advisor with Fraser Financial Group since March 2009. Her mission is to help individuals and business owners become financially secure for life without taking unnecessary risks. She is careful to address such critical issues as maximizing sources of guaranteed lifetime income, developing tax savings strategies, and provides long term care planning. She is currently an affiliate member of The Consumer Attorney Association of Los Angeles and services their membership of 3,500 attorneys. Additionally, she is an active member of Accounting & Financial Women’s Alliance (AFWA), and The Divorce Transition Professionals Practice Group.

Connect with Christen! 

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