Choosing between protection on your life and protection on your income is a decision best not made. Both are very important. Life insurance is essential when you have dependents who would suffer without you being there to provide financially. Life insurance is an inexpensive gift to those we love the most. It continues your provision and love even after an untimely death.

However, what happens if you lose your ability to work, even for a short time? Think about it for a moment.

Ask yourself these questions:

1. If I am sick or injured and cannot work is there someone who can provide for me during that time?

2. If a relative or friend who could provide for you, would you mind

asking that person for help?

3. Do you have a spouse who works and could you survive on their income alone or must you contribute money towards basic living expenses?

4. If you must have money coming in, how much would you need to keep the roof over your head and food on the table?

The key question is: It is that question that moves me off the fence on life versus disability insurance. Life insurance is in essence death insurance. In most cases, it provides no benefit while you are alive. Life insurance provides for your loved ones after your death.

Are you aware of the statistics about how likely you are to be still alive and unable to work for a period of time- short or long? Without disability insurance, you may be around to watch your loved ones suffer. Without your income how can you pay any of your bills? An emergency fund of at least six months income can prevent a crisis for short term income loss. Living debt free is also very helpful when the unexpected occurs.

How many of us live the ideal debt free lifestyle and have even one month's emergency fund? Everyone knows that most Americans live paycheck to paycheck. Most of us are only a few paychecks from being out on the street. Although a disabling injury occurs every few seconds, we are NOT financially prepared if an accident or sickness interrupts our ability to work. Even group disability benefits at your job can leave you with as little as 40% of your income after taxes. Can you live on 40-50% of your income?

Disability insurance is even more essential than life insurance because it provides money while you are still alive!

Written by Anne Foster at