Tackle the Uncertainty

The landscape of professional sports carries continuous change as priorities from the world’s top athletes fits the needs they have in their profession. NFL players model this perfectly. Over the past 3-4 years, NFL athletes are negotiating their contracts to include more guaranteed money, even at the expense of higher potential earnings. Why are they doing this? NFL players are protecting the most valuable asset they have: their income.

As individuals, we buy insurance for all the most important things in our lives: cars, homes, health, and our lives. One area we often overlook is protecting our income. As NFL players become more aware that their income could help their families for generations, they are taking less risks by guaranteeing this income. Why should we do any different? What would happen if you had an accident that caused you to be out of work for 3 months? 6 months? A year? Depending on where you work and in what profession you are in, you could be at higher risk of losing income if something were to happen.

Disability insurance is the way we can “guarantee” income during the times in which we cannot work. There are two main kinds of disability insurance: long-term and short-term. Short-term typically covers an individual for a few weeks to a few months and will kick in after a waiting period of a few days to a couple of weeks. Long-term will usually kick in after a longer waiting period such as 90 days or more. It will guarantee an individual a level of income for anywhere from 1 year to 10 years, even retirement in some cases. Most employers will offer disability insurance so check with your employer to better understand your options.

Just as NFL players protect their income, we should at least look at our financial situations and determine if we could afford not to work for an extended period of time. If you have significant savings that would cover your expenses for a while, then great! Your need for disability insurance is not as high as others. However, if you are uncertain about your income security during a period of disability or have any questions surrounding your financial outlook, feel free to reach out for a brief review. Our jobs are to ensure our clients have a holistic and clear understanding of their financial picture!

This material is for informational or educational purposes only. Consult your financial professional before making any investment decision. The adviser may recommend the purchase of insurance-related products. Signature Wealth and their representatives are licensed insurance agents with various insurance companies and may receive additional compensation for such transactions.