Insurance
Insurance helps guard against large losses that could undermine financial security for women. There are many types of insurance, but it's best to focus on insurance that protects you in places where losses could hurt the most.
Disability insurance is one of those areas. Think of it as income replacement insurance. Personal finance advice for women should include lowering risks. Here's a story of how disability insurance helped one woman and her family.
Disability Insurance Saved Her Family
By Karen J. Lee, CFP®
Many years ag
o I met an incredible woman named Connie. She was self-employed as a free-lance journalist, married, with one small child. The thing I loved about Connie was her sophistication about money, even though she was in her late 20's. She had done her planning well on her own, but the responsibility of having a child made her reach for an outside opinion from a financial planning professional.
Connie's early planning
She and her husband had a very modest income, and lived in a small house in town that was easy to afford. To me, the most amazing thing about Connie's financial planning was that she had already bought disability insurance (for income replacement) before she even met me.
I am usually the first person who brings this up to my clients, and I can't tell you how many insist that it will never happen to them, and don't take my recommendation to purchase this coverage. Connie knew that being self-employed, she had to take care of herself and provide the benefits that most people get from their employers.
Upon reviewing her financial plan, the only thing lacking was life insurance. Connie and her husband bought a combination of term and permanent coverage to cover their need, and went on their happy way.
Disaster strikes
Not two years later, Connie called m
e with some horrible news. Following a routine checkup, she had been diagnosed with soft tissue sarcoma in her pelvic bone. When she first told me of the diagnosis, she immediately stated how happy she was that she bought all that life insurance, since she might never be able to buy life insurance again. I was amazed that her mind even considered that thought at this time.
