Series · Lesson 11
Protect Your Ability to Earn
Early in a career, your earning power is often the largest asset you have.
Key Principle
For a young professional, future earning power may be the largest economic asset.
What You Need to Know
- A long career can produce millions in lifetime earnings.
- A disability can interrupt income while expenses continue.
- Health insurance protects against major medical costs.
- Disability insurance can be especially important for income protection.
What You Should Do
- Review employer disability coverage.
- Understand benefit percentage, waiting period, definition of disability, duration, and tax treatment.
- Evaluate whether supplemental individual coverage is appropriate.
- Understand health-plan deductibles and out-of-pocket limits.
Common Mistakes
- Buying investment products before protecting income.
- Assuming employer disability coverage is automatically sufficient.
- Choosing health insurance based only on premium.
Advisor’s Perspective
Insurance should protect risks that would materially alter the financial plan.
Action Checklist
- Health coverage reviewed
- Disability coverage reviewed
- Benefit limits understood
- Coverage gaps identified
This is Lesson 11 of the Your First Paycheck Education Series. Continue with Lesson 12: Life, Property, Auto and Liability Insurance.
This article is for educational purposes and is not legal, tax, insurance, student-loan, or investment advice. Tax law, contribution limits, employer plans, and insurance terms change. Consult qualified professionals when implementing a plan. Su Bella Vida is not a bank, broker, CPA, or law firm. Read our terms & disclaimer.