Imagine living on half of your paycheck. 5 ways to make sure your income continues if you can’t work


Have you set your alarm to wake you up this morning? If you did, then you depend on your income to pay for everyday expenses (trust fund babies, please move on to a different article, this information does not apply to you).

Disability insurance protects your income

Most work provided long-term and short-term disability insurance will cover about 60% of pre-tax income, which leaves you with about 40% net income, if you can’t work due to an illness or injury. I don’t know about you, but I can’t live on 40% of my income. That’s why protecting your income with individual disability insurance is a must, for anyone with a job.

Can you afford a 6 month vacation without pay?  How about a year, or longer?

Everyday activities expose us to a multitude of risks: getting in an accident while driving to work, slipping and falling in the tub, tripping over your laptop cord, falling off your kitchen step stool. More injuries happen outside of workplace than at work. Even more people will suffer some form of disease or illness, than people who deal with accidents.

The reality is: you have 100% chance of needing some medical care during your lifetime. One in four employees will be out of work for at least 6 months or longer due to an illness or injury, at some point before retirement. What does that mean to you? If you’re making $4,000 per month income, in 6 months that’s about $25,000 income loss. Add the costs for  doctors bills, hospital expenses, medications… It is known that one month of income loss will wipe out a year of savings (that if you actually do save about 10% of your income!)

Who will you turn to for money to pay your bills? Or to buy groceries, to pay your rent or mortgage? Paycheck protection will provide an income and the cost is only pennies on a dollar.


Here are 5 ways to protect your income, in case you can’t work due to an illness or accident:

  1. Get income protection (disability insurance) through work. This will cover about 60% of your pre-tax income. Employer plans benefits are taxable. They are also not portable – you lose the benefits if you leave the job. Employer paid plans usually have low group rates that you should take advantage of. Ask your employer if they offer a voluntary or employer-paid DI plan.
  2. Supplement the protection with individual disability insurance, to add coverage up to 100% of your income. Individual plans are portable, you take the policy with you if you leave your current job. It will also cover you in case of involuntary job loss, if you become sick or hurt while unemployed.
  3. Cancer and other critical illnesses cause more than health problems, they bring financial ruin to your family. Critical illness insurance will pay a lump sum of money at first diagnosis of a covered critical illness. Benefits are available from $10,000 to $500,000 lump sum and benefit is paid at diagnosis. You can use the money for anything from alternative treatments, time off to spend with the family and/or travel, cover income loss, health insurance deductibles, etc.
  4. Have a major medical health insurance, even with a high deductible. The combination of benefits from different policies can be used to cover a higher deductible, helping you save money on the health plans premiums.
  5. Get Return of premium rider on your policies. If nothing happens to you, you will receive your money back at the end of the insurance contract.

If you have questions or want a free consultation/ quote, contact us now: 877-LIFE-GUY   or email

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 or phone: (239) LIFE-GUY or 239-466-4466


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