Shake Your Money Maker

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Back in the 1970's, as an up and coming Financial Diva, it wasn't out of the ordinary to occasionally find myself in an establishment with adult refreshments and some great music you could dance to. Just imagine a disco ball and the soundtrack from Saturday Night Fever and that should provide you all the mental image you can handle. I had this friend who loved to say, "Let's shake our money makers tonight!" That always made me laugh, and that girl could dance.
Since those halcyon days of polyester and sequins, I've hung up my dancing shoes, but I'm still thinking about money makers.

The most valuable asset you will ever possess is your ability to generate an income. More valuable than your home, your car, or any high dollar toy. Consider the fact that most of us will work for 30 to 40 years. If you average $50,000 per year in salary, which is a pretty low average for a lot of you, that's $1.5 million to $2 million in potential lifetime earnings.

The Social Security Administration says that 1 in 4 Americans who are 20 years old have a chance of
becoming disabled by the age of 67. What happens if you are in your 30s, 40s, or 50s when this happens and have many years to retirement? Once you exhaust your paid leave, how will you generate an income if you can't work? The answer is Disability Insurance.

Short-term Disability Insurance will protect you for six months or less, while long-term kicks in after the short-term period ends. It will not replace your entire income if you are unable to work, but rather a percentage - say 60% to 70%. Depending on the type of coverage you elect, your age, and your health, it can be extremely affordable compared to the alternative of having no income. There are a few things to consider when choosing a disability policy:

• Does your employer offer Disability Insurance as part of its employee benefits package? If not, an individual policy from your insurance company will work just fine.
• What types of disabilities does the policy cover? Total or Partial? Permanent or Temporary?
• Is coverage for Own Occupation or Any Occupation? Own Occupation is better for you since you only have to prove you can't perform the duties of your own job to receive benefits. Any Occupation is more restrictive as you have to prove you can't perform duties of any job to receive benefits.
• What percentage of your income will the policy replace and for how long?
• What is the elimination period? This is the period of time between when your disability starts and when the policy begins paying benefits. The longer you wait to receive benefits, the cheaper the coverage will be.

We all feel invincible when we're young and in good health But anything can, and does, happen. Part of managing your finances includes protecting yourself with insurance. There is no more important thing to protect than your money maker.
Live Fabulously - Diva