Ten Steps for a Sound and Secure Retirement

4. Invest in Disability and Life Insurance.

- Your most important asset is not your IRA or 401(k) – it's your ability to produce income. Protect it!

- If you're still working, buy disability insurance to ensure income continuity and shield your savings from premature depletion.

- Buy life insurance to protect your family from income loss. Use whole life insurance as a tax-sheltered way of amassing retirement capital as well as achieving protection.

Interview

Why life, disability and long-term care insurance are so important. David Woods of the Life and Health Insurance Foundation for Education and Steve Weisbart of the Insurance Information Institute explain.

Tools and Resources

Learn more about life insurance at:

- The Life and Health Insurance Foundation for Education.

- The Insurance Information Institute

Quote

"One of the ways for a person to determine if he or she needs long-term disability income insurance is to ask themselves the question: what would happen if I became disabled, couldn't work and lost my income? How would I survive? How would I pay the bills?" - David Woods, Life and Health Insurance Foundation for Education.

Definition

Disability insurance is coverage that pays benefits in the event that the policyholder becomes incapable of working. Life insurance is a contract between a policy owner and an insurer (usually an insurance company) where the insurer agrees to pay a sum of money upon the occurrence of the insured individual's or individuals' death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals or in lump sums.

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