Income is crucial. Here are three ways to help protect yours.

Income is crucial. Here are three ways to help protect yours.

Protecting your income is a key to building a solid financial foundation. Without income protection, it may be difficult to maintain your family's lifestyle—and impossible to achieve your financial goals.

And because income is so crucial to your family's security, it's important to protect it from different angles—from smoothing out temporary income setbacks, to handling worst-case scenarios.

Here are three steps you can take now to help protect your income:

1. Get the life insurance you need

If someone relies on your income for their well-being, or if you have any debt others would be responsible for if you're no longer around, you need life insurance. How much do you need? A simple starting point is to have up to 10 times your annual income in life insurance coverage. Since each individual's needs are different, you can start by using an insurance calculator to better estimate your needs.

There are different types of life insurance, and coverage today can be quite affordable—perhaps less than you pay monthly for your cellphone.

2. Protect your income from disability

Most people don't realize the chances of becoming disabled. Consider this: Just over one in four of today's 20-year-olds will become disabled before they retire*. If this happens to you, how would you cover your bills? The ability to earn an income is one of your most valuable assets, and it should be insured like your home, car or boat.

You may have some disability income insurance coverage through your employer, but most employer plans offer short-term coverage that would pay just a little more than half your income, before taxes. In addition, employer disability income coverage is generally not portable. To be adequately protected, consider your own individual policy.

Could you borrow from your family, or could you cover years of living expenses with your current savings? No? That's why disability income insurance is critical – it provides income when you need it most.

3. Build your emergency savings

It's just a matter of time before the car needs new tires, or the furnace needs to be repaired. It's important to save, not only for routine maintenance, but also for the unexpected. A temporary loss of a job or a medical emergency can have a substantial and potentially devastating financial impact. An emergency fund with enough to cover three to six months of your essential household expenses is critical. If you have not yet reached this goal, make it a priority.

Next steps

The strength of your financial plan starts with a strong foundation. Once you have created a budget, put all the necessary insurance in place to help protect yourself and your family, and have established an emergency fund, you can focus on your other financial goals. Contact one of our financial professionals to help you set a strong foundation for your financial future.

*Council for Disability Awareness. Disability statistics. Updated March 28, 2018.
 
Clients should consult a financial professional for guidance and/or information regarding their specific situation.
D-457903 7-19

Insurance products issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Guarantees are based upon the claims-paying ability of the issuer. Product, product features and rider availability vary by state. Issuers not licensed to conduct business in NY. 

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