How to Insure Your Income: How Much Income Insurance Do You Need? Introduction

Disability income insurance can enable you to pay a mortgage and other necessary family expenses when a total disability due to an accident or sickness cuts off your income. But exactly how much of this insurance do you need?

The process of determining your disability needs is similar to identifying your life or health insurance needs. The main difference is that disability insurance considers your annual income as part of the equation -- the other kinds of insurance don't.

You'll hear insurance agents and other industry types talk in technical terms about needs analysis. But you shouldn't be intimidated by technicalities. The critical question that needs analysis answers is: Is the premium you'll pay for coverage worth its price?