Life insurance industry statistics tell us that at the age of 35 you are 10 times more likely to be disabled from an illness or injury than you are to die from it.
How will you pay the bills? The mortgage payments, cars, living expenses, college, etc etc? The answer is Paycheck insurance, formally referred to as Disability Insurance / Disability Income Protection.
You may get a limited amount of sick pay from your employer if you're salaried, but it won't last long. There's always workers' compensation, but that only covers you for work-related injuries - a very small percentage of causes of disability. But if you are self employed or an independent contractor, you most likely don't qualify for either plan.
But if you have Disability Income protection it will pay between 55 to 70 per cent of all income / earnings allowing you to maintain a reasonable lifestyle and maintain payments of your important obligations, such as your home mortgage.
These policies are not inexpensive, averaging approximately 2% +/- of your annual income. You can different benefit periods or options that may reduce your premiums. Make sure you buy this valuable protection today, locking in your premium payments, because the older you become the more expensive this policy will be to purchase in the future. Look for a non cancel-able and guaranteed renewable contract. If you are a skilled professional you should also look for a plan that has an "own occupation" provision, meaning that if you can not be a lawyer or surgeon, you can become a teacher or family doctor while continuing to receive your disability income payments. Quotebroker offers a number of different plans from major insurance companies. For more information: Disability Insurance.