If you could afford to insure one of your body parts, which would that be?


English: the silhouette of a hand
silhouette of a hand (Photo credit: Wikipedia)

You’ve heard of celebrities getting huge amounts of insurance for certain body parts to help them avoid a financial burden if one day they can’t perform their job:

After Gillette determined that Rihanna has the most goddess-like legs in the world, she insured them for $1 million. Madonna thinks she would lose about $2,000,000 if something happened to her boobs, so she insured them for that amount to cover for the time and money lost. What would an iconic Pretty Woman be without her killer smile? Julia Roberts would find herself out of a paycheck, so she decided her forced retirement due to any accident that would affect her smile is worth $30 million. Bruce Springsteen, still going hard at age 62, will get $6,000,000 if The Boss can’t sing one day due to any health issues that would damage his vocal cords. David Beckham insured his knees for a staggering £100 million. And the list goes on…


Publicity stunt, or sound financial decision?

There’s no doubt that the water cooler conversations about Rihanna’s insured legs have the potential of indirectly increasing her latest album sales, but if she can’t do her show promoting her album during her US tour, or film that great music video, she would be out of lots of dough. Have you tried dancing with a broken ankle? And what if she’d be out for few months, or maybe years? The insurance money could help delay the financial hardship that comes with not being able to perform. And being a star is not cheap!


How about your pinkie? What is it’s worth?

So, you’re a court typist. You expect to make about $70,000 per year income. You depend on your income to send your kids to school, to pay the rent or mortgage, pay for that vacation you and your family have been looking forward to at the end of the year. Oh, the cable and phone bills don’t pay themselves. Groceries need to be purchased…

How much can you possibly earn before you hit retirement? If you’re age 35, your collected income until age 65 will reach $2,100,000. WHAT??!!? Yes, you’re worth $millions and didn’t even realize it!

What would happen if that bike ride through the woods wasn’t as smooth as you hoped and you fell and broke your pinkie? Or that tennis tournament got you so excited that you injured your wrist in an overzealous swing? Uhmm… here come expensive ER bills, copayments, coinsurance. But how about the income you will lose for the length of time it would take to recover? Or, what if the damage is permanent and now, that finger you didn’t give much importance to before, it doesn’t allow you to keep your job? (Hey surgeons, you follow me?).

Think of a time you called in sick because of an annoying headache. Can you still work if you have a headache? Maybe, but would you want to? If a headache keeping you from working and being efficient at work is easy to imagine, then think of someone you know that’s been out of work for a lengthy period due to an illness or injury. Now, imagine that person’s financial situation due to the sickness. Did the lack of one paycheck in the family affect their lifestyle? Maybe they got buried in debt, maybe the spouse had to work extra hours to make up for the part of income loss in the household. Or the spouse also lost income because he or she wanted to stay home and care for the sick spouse. Maybe they had to postpone their kids going to their college of choice, or they had to dip into the retirement funds or other savings. But what if they had a plan in place, to have an income still coming every month to help pay for their expenses in such situation? No, they’re not celebrities, but they depend on their income just as much or more, to pay for the everyday expenses and bills. Do you depend on your paycheck?


What if your last payday was your LAST?

How long can you make it without a paycheck? Could you afford a three month vacation starting tomorrow? How about six months?

You may have workman’s comp provided to you by your employer. Workers’ comp only pays for on the job injuries. Not for those off the job accidents, and not for any illnesses that are not work related. Did you know that 96% of injuries occur outside the workplace?


What can I do? How can I make sure that I will still receive a paycheck if I get sick or injured and can’t produce an income?

I’m no celebrity, but I know that my bills will still need to be paid if I got sick. I know my employer will provide some sick-pay, but what happens if my illness lasts longer? There are a few lucky ones that have some long-term disability insurance provided by their employer. But how much is that exactly? Will that be enough? Or what if you are self employed, and no plan in place for sickness or accidents? Health insurance will pay your doctors, hospital, nurse, ambulance… but who will pay you?

Paycheck protection (or income protection) is a must for all of us, celebrities or not. We may have resources for a short period of time in case of an inability to work, but for longer periods you need a long-term disability insurance. Defer the risk for pennies on a dollar, let the insurance company pay for your bills, and get peace of mind. And now, with the new return of premium feature, if you have a policy and never become sick or hurt, you will receive 100% of your premiums back at age 65, or a smaller % if you cancel your policy sooner.


How does this concept of ”refund of premium” work? It sounds like a scam!

Well, it works. Let’s assume you add money into a CD, or a savings account. You expect to earn an interest, right? Well, the interest part is used by the insurance company for their costs and profits or to pay eventual claims, and if you didn’t have any claims you get only the amount you paid in premiums at the end of the contract (usually age 65 or 67). Makes sense? Actually, there are only few types of insurance that will pay back your premiums if you didn’t get to draw any benefits. Wouldn’t it be great if your car insurance or home insurance would get your premiums paid back to you, if you didn’t wreck your car or your house didn’t burn down? Sorry, you wouldn’t get those expensive premiums back. But income insurance and life insurance can return your premiums!


What is normally covered by income protection insurance?

We’ve just talked about celebrities insuring their body parts for millions. You must be thinking: “This doesn’t sound like something I could afford! Plus, how do I decide what body parts are essential in my line of work? And what happens if I insure my hands, but instead I injure my back and I can’t drive to work?”

I have good news! Actually, GREAT news: a good income protection plan will cover ALL of your body parts, for any accidents and also for any illnesses that would impair you from doing your job. Your back? It’s covered! Hands? Covered! Heart or circulatory issues? All included. Brain damage? Check! Cancer? Yes, you will be covered. Any sickness or injury that would stop you from being able to work – all covered. You will be able to focus on your recovery, instead of how you will be able to pay the bills. Your check will continue to come even if you can’t work, or if you can only work part time.


So, how much does this paycheck insurance cost? I already live paycheck to paycheck, I can’t afford another expensive bill.

The cost of this type of insurance can be less than what you are currently paying for your cable bill, or about a cup of coffee a day. Depending on your age, income level and any medications you’re currently taking, you can expect to pay about 1% to 2% of your income for the peace of mind that your major expenses are paid in case of your inability to work. To any of us, that’s worth the cost. What is your peace of mind worth? If nothing else, at least cover the cost of your rent or mortgage, and utilities. And don’t forget that cable bill, because you’ll spend endless hours in front of the TV when you can’t work.

Don’t wait until it’s too late! Contact me to learn more and get a free quote.



Article by Daniel Dragan.

Daniel Dragan is an insurance benefits specialist helping his clients and insurance agents to protect families from financial hardship with products like income protection, life insurance, long-term care, cancer and critical illness protection. Daniel Dragan is a MGA broker licensed and contracted with multiple A-rated insurance carriers, being able to offer the best plans available in the insurance market, tailored based on each individual’s needs and situation. Daniel can be contacted by email at Daniel@LifeGuy.com , by phone at 239-LIFE-GUY or Toll Free at 877-LIFE-GUY.

This article can be republished only with express written permission from the author. For questions, email info@LifeGuy.com



Author: LifeGuy

Daniel LifeGuy Dragan has 125 posts in this blog.

Daniel is a dedicated insurance expert with a focus on helping individuals, families and small businesses avoid financial disasters with Life Insurance products, Paycheck Protection (Disability Insurance), Retirement planning, Cancer and Critical Illness Insurance, executive and business protection plans. With his comprehensive knowledge and experience in financial protection, Daniel can help save money as well as get all your insurance premiums returned to you if you didn't use any of the benefits. "Return of Premium" insurance is one of Daniel's strengths and along with his personal approach to his customers' needs, one of the main reasons his clients are referring him to friends, family and business partners. Daniel offers free financial consultations and can be reached by email at Daniel@LifeGuy.com or phone: (239) LIFE-GUY or 239-466-4466