Hello, I'd like to talk to you about disability insurance, frankly, a topic that's often neglected. Life insurance, term life insurance is relatively affordable. Disability insurance, on the other hand, private disability insurance can cost thousands of dollars a year, so it's often the last thing my clients want to talk about, but I have a cautionary tale to tell.
A friend of mine was dropping her son off at college late August of this year. As she went to close the trunk of her van, she forgot that she had attached to it a bike rack, and as the trunk came down, the rack hit her on the head. She suffered a concussion. Now it's early November, and she's still suffering the effects of that concussion.
Why am I telling you this story? Well, she's a single mom. She charges for her time and she has been unable to work the hours she usually works, and so her earnings have fallen dramatically. Now, I know she works with another financial advisor, so I just assumed that she had adequate disability insurance, and when I asked she said, Laura, please use my story with your clients because she hadn't gone over her disability insurance in years and she has a large shortfall between what she is able to collect and what she actually needs to pay her bills each month. Now, why is this story relevant to you? Well, if you are like many, you have some employer provided disability insurance, but often, because your employer pays the premiums, if you were to actually need to collect that disability insurance, it would be taxable. So though it may look like you have adequate insurance on a pre-tax basis, after taxes you may find that there's quite a large gap between what you're bringing home right now and what you were to bring home if you had a disability event, and were unable to work for a couple of months.
So I urge you to look at what that gap is and to purchase private disability insurance to cover that. I'd be happy to help you with that. Please reach out either by emailing me at Laura at True Abundance Advisors or giving me a phone call. Again, my name is Laura Rotter of True Abundance Advisors urging you to live your life on purpose and use your finances purposefully.