How to Insure Your Income: Why You Need to Insure Your Income Conclusion
Your ability to earn an income is a far greater asset than any of the other material possessions or assets you may have.
The risk of losing this ability is substantial. The probability of a disability occurring is many times greater than the probability of premature death during the same period of time.
The Probability of Disability Compared to Death at Specific Ages
| Age | No. per 1,000 Disabled | No. per 1,000 Dying | Probability of Disability Compared to Death |
| 32 | 6.87 | 1.74 | 4 to 1 |
| 37 | 7.75 | 2.27 | 3.5 to 1 |
| 42 | 9.46 | 3.39 | 2.8 to 1 |
| 47 | 12.00 | 5.00 | 2.4 to 1 |
| 52 | 15.78 | 7.36 | 2 to 1 |
Logically, there should be more disability income sold to cover this higher risk. This doesn't mean that life insurance is a waste -- it's an important thing to have. It just means that more people should be thinking about the economic death that a disability can cause.
The insurance industry encourages confusion on this issue. The commissions paid to agents for selling disability insurance are usually smaller than the commissions for selling life insurance. So, agents often stress the need for life insurance based on the probability of premature death -- while overlooking the risk of an economic death created by a disability.
During working years, the risk of a disability occurring is much greater than the risk of premature death, and the impact of a disability can result in an enormous financial burden.
