Eric Greenhow

Why bother having disability insurance?

I get it—nobody looks forward to paying their disability insurance premiums every year! It’s not exactly an exciting expense that people enjoy having to pay. However, think of the ramifications of an unexpected or tragic event occurring without this protection in place. Here’s some examples of why it’s so important.
Disability insurance can protect you against loss of employment income
You’ve likely spent many years becoming an expert in your profession — whether it’s a physician, attorney, or farmer. What if, all of a sudden, you were unable to perform this job. What would you do to generate income and support your family?
There’s other questions, too. Would your replacement career provide a similar level of income to your family? Or less? What if you couldn’t work at all, for weeks, months, or permanently? If something ever happened that prevented you from working, disability insurance can help.
Disability insurance can help protect your future income earning potential
You likely insure your home, correct?
Let’s say the value of your house is, hypothetically, $500,000. Your car, as well – let’s assume it’s worth $50,000.
If someone were to make $100,000 per year in annual income, and they have 25 years to work, the math says their future earnings potential is $2,500,000 (ignoring any interest compounding or present value calculations). Given the real value of your future work – think of it as an asset — why wouldn’t you insure it?
Disability insurance can help preserve your existing retirement plans
If you became physically or mentally unable to continue doing what you enjoy doing now — for a time or even permanently — disability insurance helps to compensate for the loss of monthly income and future earnings. But what if you didn’t have it? Where would the money come from if you couldn’t work?
Without this protection, your entire savings plan(s) could go out the window! As part of a well thought out and comprehensive financial plan, my advice is to look into disability insurance and take the steps necessary to protect yourself and your family.
This column is sponsored by Allen & Company, and the opinions expressed herein may not reflect those of CFAN or of its advertisers.
BIO: Born and raised in the Central Florida area, Eric Greenhow strives for excellence — embodying the spirit and core values of Allen & Company.  He is nationally recognized for his industry leadership and community service and is a Chartered Financial Analyst® and CFP®. For more information about Eric and the Allen Investments Team, call 863.294.7411 or visit

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