Disability
Insurance provides Income Protection. People are Productive Assets. We link our
survival to our ability to make money, and if you become disabled, that ability
becomes impaired. When I started working after university, my first job was in
Disability Product Development. You pay a premium (your share of a pool of
money covering all those at risk), and if something awful happens, the associated
financial pain of the tragedy is lessened. One type of cover provides a Lump
Sum, which then needs to be invested so that it can work on your behalf.
Another type pays a portion of your salary till retirement. You can get “Own
Occupation” cover which costs slightly more than “Any Occupation” cover,
because you may still be able to work, but not do the thing you wanted to do. “Daily
Tasks” cover is less job dependent and focuses on whether you can do the
physical things you need to do to look after yourself. From that first job, I
became determined to not be that dependent on my income. But while I was, I got
the thing I was helping sell to others for myself - Disability Insurance. I
kept the cover till I had built an Engine to cover myself.
