Income protection provides valuable reassurance

August 11, 2017 | Rethinking shop and trade classes Chawn Honkomp, CPA*, MBA and Tony Niedert, RICP®, Principal National and Principal Life Financial Representatives, Principal Securities Registered Representatives and Financial Advisors, Honkomp.Chawn@principal.com, Niedert.Tony@principal.com

Q. Income protection: Why would I need that?

A. Income protection. Yes, it’s a real thing. It’s a way to continue to earn an income even if you’re too sick or hurt to work. The monthly benefits it provides work much like a paycheck. And what’s the best part? You’re in charge of deciding how to use those benefits.

Still have doubts? Maybe, like others, you’re concerned that income protection (or disability insurance) isn’t right for you. Just make sure that thinking is not based on these common misconceptions:

“I’m invincible, right?”

Well, no one can predict the future. But fortunately you can prepare financially for the unexpected.

“I’m covered with disability insurance through work.”

You’re fortunate, but make sure you have enough coverage and that it works for you.

“I can rely on savings.”

That’s one strategy, but being too sick or hurt to work likely isn’t what you’re saving for. Wouldn’t you rather not have to dip into those savings if the unexpected happens?

“I’d rather spend my money on other things. Disability insurance just costs too much.”

We get that. It’s not fun to spend money on insurance. But you’ll thank yourself down the road if you need it. Plus, a policy can be customized to fit your needs and budget. In many cases, it can cost less than a daily cup of premium coffee.

Bottom line: Almost everyone who earns a paycheck needs income protection, with a few exceptions:

• Are you close to retirement?
• Do you havee nough cash savings and liquid assets to last several years?

If neither of those apply to your situation, you may benefit from talking to a financial representative about income protection. It could be an easier conversation than you think.

* CPA does not provide tax or accounting services on behalf of the companies of the Principal Financial Group®.

Disability insurance from Principal® is issued by Principal Life Insurance Company, Des Moines, IA 50392-0002, www.principal.com

Disability insurance has exclusions and limitations. For costs and coverage details, contact your Principal representative.

Chawn Honkomp and Tony Niedert are Financial Representatives of Principal National Life Insurance Company and Principal Life Insurance Company, and Registered Representatives and Financial Advisors of Principal Securities, Inc. Securities offered through Principal Securities, Inc., 800/247-1737, Member SIPC. Principal National (except in NY) and Principal Life are issuing insurance companies of the Principal Financial Group®. Principal National, Principal Life and Principal Securities are members of the Principal Financial Group, Des Moines, IA 50392. Chawn can be reached at 515-226-8040 and Tony can be reached at 515-246-4048.