Make sure that you deduct any work related expenses that will not occur during an absence. If the liquid assets will not cover expenses for an extended period of time, then you may want to seriously consider investing in an income protection policy.

According to the U.S. Department of Commerce, Americans are saving less. Personal savings, when reviewed as a portion of disposable income, have been shrinking every year since 1998. That coupled with the rise in personal bankruptcies over the last several years show in tangible numbers that more and more Americans are living paycheck to paycheck.

Likewise, JHA, an insurance consulting and research organization, reports that individuals are three and a half times more likely to suffer serious illness or injury and need disability insurance than they are to die and need life insurance. These facts provide for a volatile situation should tragedy strike.

Lastly, individuals should look at any insurance coverage they already have when evaluating income protection insurance. Look primarily to see what gaps exist in the policies. Look to see if there are any overlaps. Once all the factors have been laid out in plain view, then you will be able to more accurately determine if income protection is right for you.