Income and Mortgage Protection
Insuring Your Most Valuable Asset
If I were to ask you, “What is your most valuable asset?” you might say your home, your car, or your retirement savings. But the real answer is something far more fundamental: your ability to get up every day and earn an income. Your income is the engine that powers your entire financial life. It pays for your home, puts food on your table, and allows you to save for the future. So, what would happen if that engine suddenly stopped due to an unexpected illness or injury? This is one of the biggest financial risks any working person faces, and it’s a risk you can and should insure against.
My name is Judy Pratcher, and I help my clients protect their financial foundation with two of the most important forms of coverage available: Income Protection (also known as Disability Insurance) and Mortgage Protection Insurance.
Income Protection: Your Paycheck’s Insurance Policy
We don’t think twice about insuring our homes and cars, yet many people leave their income completely unprotected. Disability Insurance is, quite simply, insurance for your paycheck. If you become too sick or injured to work, a disability policy will replace a significant portion of your monthly income, allowing you to continue paying your bills and maintaining your lifestyle while you recover.
Most people think disabilities are caused by rare, dramatic accidents. In reality, the vast majority are caused by common illnesses like cancer, heart disease, back problems, and arthritis. It can happen to anyone, at any age. There are two primary types of disability coverage:
- Short-Term Disability (STD): This coverage is often provided by an employer and is designed to cover the initial period of a disability, typically for three to six months. It replaces a percentage of your income to cover you during a temporary recovery.
- Long-Term Disability (LTD): This is the most crucial form of income protection. It kicks in after your short-term benefits run out and is designed to protect you for an extended period—often for several years, or even all the way to retirement age, depending on the policy. For self-employed individuals or those whose employers don’t offer it, a private LTD policy is an absolute necessity.
Mortgage Protection: Ensuring Your Family Always Has a Home
Your home is likely your largest and most emotionally significant asset. It’s where your family builds its life and creates memories. Mortgage Protection Insurance is designed to make sure your loved ones can stay in that home, no matter what happens to you.
Typically, this is a specific type of Term Life Insurance policy where the coverage amount is designed to match your mortgage balance. If you were to pass away unexpectedly, the policy pays a tax-free death benefit directly to your family, giving them the funds to pay off the mortgage completely. This removes their single largest financial burden during an incredibly difficult time, providing immense security and stability.
The Ultimate Financial Safety Net
Think of Income Protection and Mortgage Protection as two essential pillars supporting your financial security.
- If you get sick or hurt and can’t work, your Income Protection policy provides the monthly cash flow to keep paying the mortgage and all your other bills.
- If you pass away, your Mortgage Protection policy pays off the house, eliminating that massive debt for your family forever.
Together, they create a comprehensive shield that protects you and your family from life’s most challenging “what ifs.” You’ve worked far too hard to build your life to leave its foundation unprotected. As your advisor, I can help you analyze your needs, understand your options, and find affordable, high-quality policies from top-rated carriers. Let’s schedule a time to talk about building a plan that ensures your income and your home are secure, giving you and your family true, lasting peace of mind.