Income Protection: How Disability Insurance can Protect your Family

Money and a disability insurance signage

QUESTION: If you had a Machine that could produce $100,000 per year how much would you pay to Insure that Machine?

ANSWER: You are “that machine“!  It typically costs about 1% to 4% of your Income to adequately protect 70% of your income if you cant work (do your job “OWN OCCUPATION”).

Most people would be willing to pay at least $1,000 to $4,000 per year to make sure that machine keeps pumping out money.

This is Disability Insurance. Don’t worry there are ways to keep it more affordable….

Did you know that an individual is about three times more likely to become disabled for 90 days or longer than they are to pass away before age 65.

90% of disabilities are due to an illness or sickness and only 10% are due to an injury!

EXAMPLE: If you are 40 years old, you have about 25 more years until retirement (at Age 65). Your income potential would be as follows:
$100,000 Salary  x  25 Years = $2.5 Million Income (with a 3.0% annual raise it’s $3.6 Million)

Congratulations you are a Millionaire! If something happens that turns off that INCOME you are screwed…

Disability Insurance is more crucial than Life Insurance in my opinion. Because you are still alive, yet unable to earn an income (or reduced income working ‘part-time’) you are at a great disadvantage. My goal is to help you find a Disability Insurance policy that best fits your budget. Typically, this might be obtaining a smaller policy now and upgrading your coverage down the road.

Diagram shows the effect of Disability and the need of Disability Insurance for Income Protection

Expenses Skyrocket and Income Drops if you cant WORK…

Simply your Expenses to live will skyrocket due to medical issues (injury or illness) and Income will decrease since you cant work or can only work part time.

Why It’s Easy to Get Started

I work with Eight Disability Insurance companies to ensure you get the BEST Value for the coverage. With Disability Insurance you ‘get what you pay for’, meaning cheap coverage equals cheap payouts. However depending on your “Professional Occupation” some carriers have better coverages for some jobs than others. 

 If you have questions or want a quick quote give me a call.


Gary Franke, MBA
Independent Broker
Achieve Alpha Insurance, LLC          
12507 Bel-Red Rd, Ste 103
Bellevue, WA 98005
Phone:(425) 802-2783

Achieve Alpha