Why Income Protection Matters
"Disability income insurance is paycheck insurance."
That's how Nebraska insurance professional Bob Isaacson explains disability income insurance (DI) to his clients. It's also a philosophy he's followed throughout his career.
In fact, the first insurance policy Bob purchased for himself was a DI policy at 25 years old. His reasoning was simple: if you're unable to work due to a disabling illness or injury, your income may stop—but your financial responsibilities won't.
His perspective raises an important question for every working American:
I’m Bob Isaacson from Holdrege, Nebraska. My family has been in insurance many, many years. My dad started in 1949.
I've been really, truly blessed in this business, being able to help people when they really need us. Disability income insurance, we call it paycheck insurance, replacement for your lost income and it covers you on or off the job for injuries or sickness. The need is really out there because if you get sick or hurt, expenses still keep going, even when you're disabled.
The need is great and you can buy return a premium on that also. They have the coverage, if they do need it, then if they're fortunate to not ever get disabled, they get all their premium back minus any claims paid. So it's just kind of a win-win situation.
We've had several get all their money back. You won't believe how happy the people are when they get those checks. It's just amazing to see their response.
So that's really rewarding to be able to do that. Have the courage when they need it and money back if they don't. There are many companies out there that write disability, but Illinois Mutual's the only company that returns premium on their personal disability and their business income policy, and they've done it for a long time.
I've always used Illinois Mutual. Number one, they're competitively priced, so they give us good options. Everybody I talk to from Illinois Mutual has been real pleasant, helpful.
They all feel like a team that wants to get a policy issued and the best rates and manner that we can. So it's been really a good relationship.
How would your finances be affected if you couldn't earn a paycheck for months—or longer?
Why Your Income is the Foundation of Financial Security
Most financial goals depend on a steady income. Your paycheck helps support:
Mortgage or rent payments
Utility bills
Groceries and household expenses
Childcare and education costs
Retirement savings
Future financial goals
Why is income protection important?
A DI policy can help address the financial impact of a disabling illness or injury that prevents you from working. Because many financial obligations continue regardless of your ability to earn a paycheck, protecting your income is an important part of a comprehensive financial plan.
Unlike health insurance, which helps cover medical expenses, DI focuses on helping individuals and families maintain financial stability during recovery.
Mortgage, Utilities and Groceries.
Simply add up how much you pay for these basic monthly expenses.
This gives you a good starting point for figuring out how much DI insurance you might need if you become sick or hurt and totally disabled. Consider factoring in car payments, childcare costs, credit card debt and other monthly expenses.
Why Many People Underestimate Disability Risk
Throughout his career, Bob has found that many people simply don't expect a disability to happen to them.
While that assumption is understandable, disabilities can arise from a wide range of causes, including:
Chronic Illnesses
Cancer
Heart disease
Musculoskeletal conditions
Accidents and injuries, on or off the clock
Because these situations can occur unexpectedly, it's worth considering how a loss of income could affect your financial plans.
The Bottom Line
After decades of helping clients protect what matters most, Bob Isaacson continues to emphasize a simple truth: your ability to earn an income plays a critical role in your financial well-being.
You may already insure your home, vehicle, health and life. Taking time to evaluate how you would manage financially without a paycheck can help you determine whether income protection deserves a place in your overall financial strategy.
Frequently Asked Questions
Disability income insurance helps replace a portion of your income if a disabling illness or injury prevents you from working.
Many insurance professionals use the term "paycheck insurance" because disability income insurance is designed to help protect a portion of your income when you're unable to work.
Anyone who relies on earned income to pay bills, support family members, save for retirement or achieve financial goals may want to consider disability income insurance.
Health insurance helps cover medical expenses. Disability income insurance helps replace a portion of lost income when a covered disability prevents you from working.