RPF0337-Why_You_Should_Buy_Disability_Insurance
00:00:00.000 | Today on Radical Personal Finance, I'm going to sell you a disability insurance policy.
00:00:05.840 | Now hold on.
00:00:06.840 | You don't have to hold on to your checkbook too tightly.
00:00:09.760 | Unfortunately for me, I dumped my insurance license so I can't actually collect the
00:00:13.500 | commissions on it or on the many policies that I would sell if I actually were still
00:00:18.160 | selling them.
00:00:19.160 | But I'm going to do my best to actually enforce the concept today because I'm pretty
00:00:23.800 | hardcore passionate about disability insurance.
00:00:27.440 | I believe it's the most important insurance that you could own.
00:00:32.920 | And I promise I'll defend that claim in today's show.
00:00:36.080 | And I just think it's something that any intelligent thinking person who works should
00:00:43.880 | have.
00:00:44.880 | Welcome to the Radical Personal Finance podcast.
00:01:02.600 | My name is Joshua Sheets and I'm your host.
00:01:04.320 | Thank you for being with me today.
00:01:06.200 | This is the show where we work hard to provide you with the knowledge, skills, insight, and
00:01:10.560 | encouragement you need to live a rich and meaningful life now while also building a
00:01:14.920 | plan for financial freedom in 10 years or less.
00:01:16.920 | But you know what?
00:01:18.680 | That plan is predicated usually upon your ability to work.
00:01:22.720 | So today, a little bit of knowledge about what to do if you can't work.
00:01:28.160 | I received an email from a listener a few weeks ago and they said, "Joshua, I've
00:01:35.640 | heard you make this statement several times on different shows that you really think disability
00:01:39.520 | insurance is important.
00:01:40.520 | In fact, you think it's the most important insurance that I could own.
00:01:43.280 | And so I was thinking about getting some.
00:01:45.040 | So I went to your website and I was looking through the archives for a show on disability
00:01:48.000 | insurance and I didn't see a show on disability insurance.
00:01:51.800 | Can you help?"
00:01:53.920 | And I said, "Yeah, that's actually my fault.
00:01:59.160 | I haven't actually created that show."
00:02:01.280 | So here we are about 350 episodes in and it's time to create this show on disability insurance.
00:02:06.720 | And this show will be a series of shows, especially this week and more in the future.
00:02:10.880 | I've been remiss in not getting it done sooner, but I'm happy to bring it to you.
00:02:14.480 | And today, we're going to kick it off with the sales job.
00:02:18.160 | Because here's the thing with insurance.
00:02:19.560 | Insurance has to be sold.
00:02:21.400 | I don't know why more people don't think about stuff that could happen and go out seeking
00:02:26.840 | for it.
00:02:27.880 | But the whole concept of insurance, many people have a grudge against insurance.
00:02:31.800 | They don't like spending the money on the premiums.
00:02:33.640 | They love to collect the checks when they come in, but they don't love buying the policies.
00:02:39.500 | Most of us, if we had our way, we'd probably skip all insurance and we'd probably skip
00:02:44.040 | most of the insurance that we have now if we didn't – hadn't been sold it.
00:02:50.720 | Why that is, I don't know.
00:02:51.720 | I share that same feeling.
00:02:52.880 | I don't love insurance in the sense that I don't love writing those premium checks.
00:02:56.440 | But when the policies pay out, they're useful to have and it's one of those things that
00:03:01.880 | you just kind of got to recognize.
00:03:03.840 | So because we got to start with a sale, I first got to do my job of motivating you to
00:03:09.600 | want disability insurance.
00:03:11.520 | Because if I don't do a job of motivating you to want disability insurance, it doesn't
00:03:15.800 | matter any of the technical specifications that we're going to go through.
00:03:19.480 | I'm going to go through a lot of them.
00:03:20.720 | We'll go through long-term disability versus short-term disability.
00:03:23.360 | We'll go through employer-paid – excuse me, group disability at your job versus personal
00:03:27.880 | disability insurance.
00:03:28.880 | We'll go through whether or not you should pick up the money for the premiums in your
00:03:33.200 | income or not.
00:03:34.200 | We'll go through own occupation and any occupation.
00:03:36.800 | We'll go through the different terms of disability.
00:03:39.840 | We'll go through the different timing of the policies, how long they last.
00:03:43.240 | We'll go through a bunch of those things to try to give you a good understanding of
00:03:49.640 | the disability insurance marketplace.
00:03:51.160 | But today, I just want to sell you on the concept and I want to talk to you about why
00:03:55.500 | I think it's important.
00:03:57.800 | I really do believe that disability insurance is the most important insurance policy that
00:04:03.680 | you can buy.
00:04:06.680 | I mean it.
00:04:07.680 | I believe it's the most important insurance policy that you can buy.
00:04:11.760 | To prove that point, I want to start by talking to you about which of your assets are most
00:04:18.680 | important to you.
00:04:19.680 | So we're going to play a little game here.
00:04:21.680 | I'm going to give you a question and you're going to think of the answer.
00:04:24.640 | Unfortunately, I can't hear the answer but I'm going to give you time to come up with
00:04:28.040 | it.
00:04:29.040 | So here's the game.
00:04:30.040 | I want you to stop mentally.
00:04:31.040 | If you're driving in the car, you can keep driving.
00:04:34.280 | But just think for a moment about all the different assets on your balance sheet.
00:04:38.480 | Most of you have listened to the show for a while.
00:04:40.160 | Hopefully, you've gone and created a balance sheet so you could pull it up on your phone
00:04:43.600 | and show it to me if you wanted it.
00:04:45.480 | So think about all of the different assets that are on your balance sheet.
00:04:49.160 | Think of that list of assets on your balance sheet and tell me which of those assets is
00:04:54.620 | the most important.
00:05:00.480 | Which asset is the most important?
00:05:03.240 | I could also ask you the question and say, "Okay, of those assets on your balance sheet,
00:05:07.240 | which one is the biggest?"
00:05:10.880 | Because when we start to think about protecting an asset with insurance, we want to think
00:05:16.960 | about it in the context of protecting the most important assets first.
00:05:23.040 | For example, your balance sheet most likely doesn't have something like a cell phone
00:05:28.120 | on it.
00:05:29.180 | But most of you have a cell phone.
00:05:30.520 | The majority of you who are listening to the sound of my voice right now are gaining that
00:05:34.200 | – are accessing my audio file through the use of a mobile device of some sort.
00:05:39.400 | Now most of you probably paid a couple hundred bucks for that mobile device depending on
00:05:44.140 | which type it is.
00:05:45.640 | Well, that's a useful and important asset.
00:05:49.060 | And some of you have insurance on that asset.
00:05:51.800 | That might make sense in certain contexts.
00:05:55.600 | It might not make sense in other contexts.
00:05:57.860 | But the way that we would figure that out is largely based upon how much we paid for
00:06:01.680 | the device.
00:06:02.680 | So for example, I have a cell phone.
00:06:04.560 | It's a pretty fancy cell phone.
00:06:06.040 | It's basically a $1,000 phone.
00:06:08.200 | I have an iPhone 6S Plus with the way overpriced Apple memory that they give you, the high
00:06:14.400 | end.
00:06:15.400 | So basically it's a $1,000 phone.
00:06:16.400 | Well, that $1,000 phone, if that thing broke or became inoperable, I'd be hurting a little
00:06:23.000 | bit.
00:06:24.000 | I don't like to throw $1,000 around and waste it.
00:06:28.560 | So should I put insurance on it?
00:06:30.560 | Well, we could make a much higher argument for the benefit of putting insurance on it
00:06:35.880 | if I paid $1,000 for it than if I paid $100 for a phone.
00:06:41.240 | It would be a much bigger deal.
00:06:44.880 | So should I put insurance on it?
00:06:46.120 | The point here is just simply to point out that bigger assets require insurance policies
00:06:52.840 | or at least lead to considering more seriously getting an insurance policy.
00:06:58.280 | So think back to that list of assets.
00:06:59.480 | What asset did you list?
00:07:00.480 | Well, most of you, your house would probably be the largest dollar value asset on your
00:07:08.680 | list of assets.
00:07:10.720 | So many of you would put your house as number one.
00:07:14.560 | Your house is a pretty important thing.
00:07:16.400 | It's kind of hard to be without it.
00:07:18.640 | It's pretty tough.
00:07:19.640 | I've been watching over the last few weeks these fires that have been happening in Alberta,
00:07:24.880 | in Fort McMurray, Alberta, Canada, and it's pretty devastating to see thousands of people
00:07:28.920 | lose their homes.
00:07:30.720 | Pretty devastating.
00:07:31.720 | So the house is obviously important.
00:07:34.040 | Some of you might list your car.
00:07:35.680 | Maybe you rent a house and you say you don't have that on your balance sheet but you have
00:07:38.920 | your car there.
00:07:39.920 | Well, is your car the most important asset?
00:07:44.440 | Many of you are diligent savers.
00:07:46.680 | You have savings accounts and investment accounts.
00:07:49.920 | Perhaps even those accounts are much bigger than your house.
00:07:53.840 | So perhaps those are the most important assets.
00:07:57.760 | But there are a couple of assets that usually most people don't think to put onto this list.
00:08:04.240 | If I were sitting in front of you in a sales situation which I were actually selling you
00:08:07.520 | a disability insurance policy, I would have put these assets on the list and I would have
00:08:10.960 | asked you to order these assets in order of most important to least important.
00:08:15.680 | I would have written down your house, your car, your savings, and your investments and
00:08:19.920 | would have added these two assets, your health and your income.
00:08:26.160 | Now obviously these aren't exactly the same and we don't generally write down your health
00:08:30.800 | on your balance sheet.
00:08:33.200 | Usually you wouldn't accurately at least following normal rules of accounting, you wouldn't actually
00:08:37.640 | list the value of your income on a balance sheet.
00:08:40.780 | So it's a little bit unfair of me to phrase the question I did.
00:08:46.380 | But are these not assets that should be on a mental balance sheet?
00:08:50.560 | I've done this little exercise thousands – not thousands, hundreds of times.
00:08:56.160 | I've done this exercise hundreds of times and with many different people from many walks
00:09:01.920 | of life and usually when I put this list of five or six assets in front of people and
00:09:06.080 | I give them a pen and I ask them to order and rank the assets in order of most important,
00:09:11.180 | most people start off with their house just like I did in my example.
00:09:18.440 | And then they get down to that health and that income one and the way I used to do this
00:09:21.620 | in a sales presentation was I wouldn't try to – it's not a leading question.
00:09:26.540 | I would just say, "What's the most important?
00:09:28.640 | Put a one by it.
00:09:29.860 | OK.
00:09:30.860 | Now what next?
00:09:31.860 | What next?"
00:09:32.860 | And I would force people to go through the whole list.
00:09:36.260 | After going through the whole list down by the time they reach their health and income,
00:09:40.340 | they always stop and they say, "Well, wait a second.
00:09:42.580 | Actually, these are important."
00:09:43.580 | And almost without exception, people would come out and realize and recognize that their
00:09:49.140 | health is their number one most important asset followed quickly by their income.
00:09:56.500 | The reason is because of what your health and your income contribute to those other
00:10:04.260 | assets.
00:10:06.040 | Your health is what enables you to earn an income.
00:10:11.660 | Your health is what gives you the ability to go to work, to go to your job or to run
00:10:16.520 | your business.
00:10:17.520 | That's all based upon your health.
00:10:20.940 | Without that health, it's hard to keep a job down.
00:10:24.460 | So your health allows you to create an income and then the income is what actually pays
00:10:29.780 | for all of those other things.
00:10:31.860 | Because most of those assets that we list on our balance sheet are actually – if we
00:10:38.260 | were to follow Robert Kiyosaki's ideas from Rich Dad, Poor Dad, they're actually liabilities
00:10:43.140 | in the sense that they pull money from our budget.
00:10:46.320 | The only exception to that would be savings and investments.
00:10:48.540 | But our houses, most of them for most of us, they pull income from our budget.
00:10:53.660 | They require upkeep and maintenance and mortgage payments and tax payments.
00:10:57.300 | Our cars, they pull income from our budget.
00:11:00.020 | Not very fun.
00:11:01.380 | So those assets are actually dependent upon our income for us to keep them going.
00:11:09.180 | Now, health is definitely number one for most of us.
00:11:16.220 | Health is something that we often take for granted.
00:11:19.260 | I'd like to challenge that for a moment and encourage you to constantly consider it.
00:11:27.460 | If you have health, you can earn income.
00:11:29.780 | If you can't earn income, then you will quickly lose the rest of your things.
00:11:37.060 | Question, would you rather have tons of money and no health or would you rather have great
00:11:43.180 | health and no money?
00:11:47.540 | Think about it.
00:11:48.540 | I magically transport you into a million-dollar mansion on the water and you are financially
00:11:56.300 | independent.
00:11:57.300 | You have income that shows up, pays all of your bills and you're lying there flat on
00:12:01.980 | your back in that mansion with a bald head because you're going through chemotherapy
00:12:06.860 | and radiation for cancer treatments and you don't have the energy to get out of bed by
00:12:11.740 | yourself.
00:12:12.740 | But you're in a million-dollar mansion and all your bills are paid.
00:12:16.780 | So you lie there in your bed and you look out at the water.
00:12:20.100 | Would you rather be in that situation or would you rather be fit, healthy, filled with energy,
00:12:30.580 | active, vibrant, flexible, strong and just not have any money to your name?
00:12:38.380 | I often go down to the beaches here in the area and I always notice there's some people
00:12:44.500 | hanging out at the beaches that seem to be there every day.
00:12:47.580 | And you can go down and you can hang out as a poor person and walk on the same beach that
00:12:52.100 | the rich person's house overlooks.
00:12:55.180 | If you're active and you're healthy, you can go and jump in on a volleyball game and if
00:12:59.260 | you're active and you're healthy, you can bum a little food off of people and if you're
00:13:02.740 | an interesting conversationalist, they'll be happy to invite you in and you don't even
00:13:05.820 | have to pay for it.
00:13:07.820 | It's a pretty good deal.
00:13:10.420 | If I'm active and healthy, I can enjoy the day and the simple pleasures of the day to
00:13:16.900 | a far higher extent than if I'm unhealthy.
00:13:22.540 | Now I'm not saying that you have to choose between poverty and health.
00:13:28.900 | If you have health, you can actually earn money.
00:13:32.700 | And think about how many incredible ways there are to earn money if you're healthy.
00:13:37.060 | From time to time in the past, I'd go out and rent a drift boat, go out on a fishing
00:13:43.980 | charter here in South Florida where I live.
00:13:45.980 | I got a few friends that are commercial fishermen.
00:13:47.780 | I've gone out with them fishing for the day.
00:13:49.740 | I think about commercial fishing because on these drift boats where you're basically for
00:13:53.740 | tourists and people who want to go out for a day, there are always a couple of deckhands.
00:13:59.140 | And it's their job to bait the hooks and help people take the fish off their hooks and just
00:14:04.900 | basically be deckhands to help the tourists and the non-fishing natives with their fishing
00:14:13.460 | excursion.
00:14:14.460 | I think about things like that.
00:14:15.460 | I just think, you know what?
00:14:16.460 | That's a really satisfying job to some degree.
00:14:19.660 | You're out in the sunshine.
00:14:20.940 | You're helping people have fun.
00:14:22.820 | You're fishing.
00:14:23.980 | You're enjoying the emotion of it.
00:14:26.180 | What's required of it?
00:14:27.180 | Well, you got to get up early.
00:14:28.180 | You got to be out in the sunshine.
00:14:29.180 | You got to scrub the boat down at the end of the day.
00:14:31.540 | But you know what?
00:14:32.540 | If you're out on a lot of friends' boats and they're out enjoying their expensive boat
00:14:38.940 | because they have very lucrative careers and they have a beautiful sport fishing boat,
00:14:44.100 | guess what you got to do?
00:14:45.300 | You got to get up early.
00:14:46.300 | You got to go out in the sunshine.
00:14:47.780 | You got to throw a hook in the water and you got to clean up the deck when you're on your
00:14:50.260 | way back and scrub the boat down.
00:14:52.820 | So does it really matter whether you're doing it on your own boat that you worked and saved
00:14:56.980 | for years or whether you're doing it as a deckhand at a relatively lowly paid job on
00:15:01.620 | a commercial fishing boat?
00:15:03.540 | It's the same work.
00:15:05.900 | The person who's in good health can enjoy both of those things.
00:15:11.580 | So not only is health generally – does that not lead to a better life and a better lifestyle
00:15:18.580 | versus sickness.
00:15:20.640 | So even if you were poor, it's OK.
00:15:24.340 | It's better at least.
00:15:25.340 | Better to be healthy and poor than rich and sick.
00:15:31.180 | That's also what allows you to earn money and there are so many great ways to earn money.
00:15:37.100 | See, health allows you to create income and income allows you to build wealth.
00:15:43.660 | But if you lose your health, people will happily spend every dollar they have to try to get
00:15:48.180 | their health back.
00:15:50.220 | You ask a sick person what they want most, it's to get their health back.
00:15:55.820 | So there's a little encouragement for all of us to focus on our health and to make that
00:16:03.900 | a priority.
00:16:06.460 | Now is our health entirely under our control?
00:16:10.780 | No, it's not.
00:16:13.980 | To some degree, we influence it.
00:16:15.900 | We can make certain choices and decisions that will help but it's not under our control.
00:16:22.700 | Man is so incompetent and impotent that he can't even keep himself alive or healthy
00:16:26.780 | if he wanted to.
00:16:28.140 | Again, you can do your best but you don't necessarily have that choice all the time.
00:16:33.900 | There are things that happen that result in our not having health.
00:16:38.780 | Well what's worse than being healthy and broke?
00:16:45.220 | Being sick and broke is worse.
00:16:48.380 | So what happens if you lose your health and you can no longer earn money?
00:16:50.780 | Well, that's where disability insurance comes in.
00:16:53.220 | That's the job that disability insurance is designed to do.
00:16:57.180 | It's designed to help provide income to pay your bills if you lose your health.
00:17:05.580 | So back to that list of assets, how important is this list?
00:17:08.700 | Well let's say I own a house and pretend it's a $250,000 house.
00:17:12.420 | Probably have a mortgage on it, have a pretty healthy balance if I were reflective of most
00:17:15.980 | people.
00:17:16.980 | That's a sizable asset though.
00:17:19.900 | The car, maybe I have a $20,000 car.
00:17:23.740 | Maybe I have $50,000 in my savings and investment accounts.
00:17:26.540 | But what's the value of my income?
00:17:29.100 | People often neglect to calculate the value of their potential income.
00:17:35.980 | Let's pretend you're 35 years old and let's pretend that you intend to work till 65.
00:17:40.700 | So you've got a 30-year career ahead of you.
00:17:45.140 | Assume you're earning $60,000 per year and that you anticipate a 3% increase each year
00:17:53.580 | to keep pace with inflation.
00:17:56.140 | Do you know what the actual value is of that income?
00:17:59.380 | The answer is $2,854,524.94.
00:18:04.380 | We'll round that to just under $3 million.
00:18:11.620 | Almost everybody listening to this show has a potential income of perhaps $2 million.
00:18:20.260 | Some of you it's a million, some of you it's two, some of you it's 10 or some of you it's
00:18:23.700 | 50.
00:18:24.880 | But just about everybody has a potential income of at least a couple million.
00:18:29.660 | Even if you were to go to work at 45 or 50 years old and work for a decade or two, you
00:18:36.460 | still are looking at a million or $2 of income.
00:18:40.940 | That's a huge, huge dollar figure.
00:18:44.620 | So if we actually write that on the income, on the list of assets, when you write down
00:18:49.180 | $3 million, for most of us, that totally dwarfs everything else.
00:18:55.020 | When I used to do this face-to-face with prospective clients, I would first love to point out the
00:19:00.080 | fact that – because I always created the balance sheet and then I would point out the
00:19:03.180 | value of this income.
00:19:04.180 | I would say, "Listen, you are going to earn $3 million over the course of your lifetime.
00:19:10.260 | Now you're looking over here and you got $10,000 of credit card debt and you got $14,000
00:19:15.540 | that you owe on your car and you got $22,000 of student loans and $142,000 mortgage.
00:19:21.220 | And you're feeling really upset and frustrated about that.
00:19:23.620 | That's okay.
00:19:24.620 | But look, you've got $3 million over here that I expect you to earn over the next 30
00:19:33.260 | years.
00:19:34.260 | $3 million."
00:19:36.800 | Now do you think that it's possible that you could put some of this $3 million and
00:19:42.020 | clear the credit card debt, clear the car payment, clear the student loans, pay off
00:19:45.660 | the mortgage and possibly save a few hundred thousand or a million or two bucks?
00:19:50.260 | I mean you put it into context, yes.
00:19:55.500 | The answer is always yes.
00:19:56.820 | You could do that.
00:19:58.400 | So what stands in the way?
00:20:00.060 | Well, behavior, which is the most challenging thing for all of us to control, behavior.
00:20:06.580 | Because in order for me to actually do that, to pay off the car, I have to not go and immediately
00:20:10.240 | finance a new car.
00:20:12.760 | In order to do that and pay off the credit cards, I have to not immediately go and put
00:20:17.500 | more money on the credit cards.
00:20:19.860 | But when you look at it in the big picture and compare the $3 million to the things that
00:20:23.940 | stress us out today, that should give most people some hope.
00:20:27.900 | Now let's talk about it financially.
00:20:29.960 | Think about the amount of money that you pay to insure these things.
00:20:34.620 | The way I used to do this with clients and I invite you to picture it in your head was
00:20:38.140 | I would draw a little picture of your car on the left-hand side of a paper right in
00:20:43.340 | front of you.
00:20:44.340 | Draw a little picture of your car and I would know by this time in the discussion, I would
00:20:48.540 | know how much your car were worth.
00:20:49.900 | So let's say it's worth $20,000.
00:20:52.540 | Ask you how much you're paying for car insurance.
00:20:54.460 | Paying $100 a month.
00:20:55.460 | So I would write $20,000 over the car and I would write $1,200 underneath it, $1,200
00:21:02.500 | a year.
00:21:04.940 | Then I would draw a picture of your house and by this time in the conversation, I know
00:21:09.380 | how much it were worth.
00:21:10.660 | So I'd write down $250,000 and ask how much you're paying for homeowner's insurance,
00:21:15.060 | $3,000 a year.
00:21:16.980 | So I'd write $3,000 a year under that.
00:21:20.140 | Then I would keep both of those pictures pretty small.
00:21:23.020 | Then I would draw this huge box, this big, big box and I would write in there and I would
00:21:29.380 | do the math for them, $60,000 times 30 years, 3% to 5% increase in annual pay and I would
00:21:37.260 | put a range on there.
00:21:38.380 | But I would write down $3 million.
00:21:40.380 | I'd do my best to make it comparative, to show you how huge your income is compared
00:21:45.580 | to everything else.
00:21:47.340 | Then I'd draw a little line under it and I'd ask my good sales question, "How much is that
00:21:52.660 | worth to you to protect?"
00:21:54.980 | I invite you to consider it because you pay $1,200 a year to insure a car and you do that
00:22:10.340 | because the government makes you do it.
00:22:13.100 | But the car is worth $20,000 and you pay $3,000 a year to put insurance on your house.
00:22:19.660 | You do that because the mortgage company makes you do it.
00:22:24.140 | But yet you've got a $3 million asset that you don't have insurance on?
00:22:35.020 | Seems a little silly to me.
00:22:37.900 | Now that should, I hope, set the stage for you to consider the value of disability income
00:22:46.340 | insurance.
00:22:48.300 | There are lots of other statistics and things that you could go to.
00:22:52.220 | When I was a new insurance agent, I memorized all these numbers about the rates of morbidity
00:22:56.620 | versus the rates of mortality.
00:22:58.380 | Morbidity means getting sick and how likely you were to get sick and hurt at any specific
00:23:02.620 | age and I memorized all these things.
00:23:04.380 | I used to use all these charts and graphs.
00:23:05.780 | Finally, I threw all that stuff away and just drew pictures for people.
00:23:09.780 | I hope that I've drawn a mental picture for you to simply demonstrate that it's really
00:23:17.940 | important.
00:23:22.500 | Again, what's worse than having no health?
00:23:27.500 | Having no health and having no income.
00:23:29.780 | Because you're spending your money trying to get your health back, well how are you
00:23:34.660 | going to live?
00:23:35.660 | That's why I personally believe that if I could only choose to have one type of insurance,
00:23:43.260 | I would choose long-term disability income insurance over any other type of insurance.
00:23:50.660 | Because that's the one that will make the biggest difference in my life if I face a
00:23:57.300 | worst case scenario.
00:24:00.900 | Let's talk about it.
00:24:03.140 | Let's say that I get diagnosed with cancer.
00:24:05.860 | I've had for a long time, I've had an outline here of doing a show.
00:24:11.100 | I haven't done it but basically it was inspired by a listener who about a year ago wrote to
00:24:15.940 | me and said, "Joshua, I had heard you talk about getting disability insurance.
00:24:19.860 | I never did it.
00:24:20.860 | I just want to let you know I have cancer."
00:24:23.980 | We corresponded a little bit and he told me all the details of his life.
00:24:27.100 | I've been intending to do a show, what do you do when you get diagnosed with cancer?
00:24:30.820 | He's a young man, similar in age to me.
00:24:33.700 | Thankfully, he's doing better now.
00:24:36.500 | Cancer seems to be in remission, just finished up the final stage of his treatment.
00:24:40.900 | But it's been a difficult road for him.
00:24:45.020 | Let's talk about that.
00:24:46.780 | Let's say that I all of a sudden found out that I were diagnosed with cancer.
00:24:50.620 | Let's start with the simple ones.
00:24:53.340 | I have a house and I have homeowner's insurance on it.
00:24:57.020 | Well, if I'm going through cancer, how am I going to pay the homeowner's insurance if
00:25:04.180 | I don't have income?
00:25:07.300 | Even if I have homeowner's insurance, I can't even keep it because I'm not going to be able
00:25:09.740 | to make the payment if I don't have income and don't have savings.
00:25:13.820 | Same thing with car insurance and those types of property insurances.
00:25:18.620 | If I don't have income and I have cancer and I can't work, and this listener of mine was
00:25:24.300 | an accountant, he couldn't work.
00:25:26.620 | I'll cover the objections, people, reasons people don't get disability insurance in a
00:25:30.100 | minute.
00:25:31.260 | But he was an accountant, he couldn't work.
00:25:37.820 | So it's kind of pointless to have property insurance when I can't even keep the property
00:25:41.540 | insurance in force and I probably can't even keep the property if I don't have any income.
00:25:48.300 | So car insurance and homeowner's insurance are pretty easy.
00:25:52.500 | Well, what about life insurance?
00:25:57.900 | Would I rather choose to have life insurance or disability insurance?
00:26:02.460 | Frankly, if I could only choose one, I'd rather have disability insurance.
00:26:07.980 | Here's why.
00:26:09.860 | If I get sick or hurt and I die, is that going to be tough on my family?
00:26:19.100 | Without question, yes.
00:26:21.660 | That will be very tough on my family.
00:26:23.740 | If I have no savings and no insurance, it will be very, very difficult.
00:26:31.440 | If I have a wife and young kids, it would be tough.
00:26:36.060 | But you know what?
00:26:37.060 | They'd make it.
00:26:38.060 | How do I know that?
00:26:40.060 | Well, there's people who face this all throughout history, who face it all the time.
00:26:46.020 | My wife would go and get a job.
00:26:48.980 | There are hundreds of thousands of single moms supporting single-handedly, either because
00:26:53.860 | they were abandoned by their children's father or because their child's father's children's
00:26:58.180 | father died.
00:26:59.180 | There are hundreds of thousands of single moms working and supporting children.
00:27:04.520 | There are social support structures that would step in and help out.
00:27:08.420 | There would be a social security widow and orphan payment for my children, guaranteed.
00:27:14.540 | So they would have some minimum level of income.
00:27:17.240 | Because I'm dead and gone, my family can work out whatever living arrangements need to be
00:27:22.000 | worked out in order for them to be able to make it financially.
00:27:27.440 | They could sell the house if we owned a house.
00:27:29.100 | They could move to a cheaper apartment.
00:27:31.120 | They could move in with family.
00:27:32.120 | If my wife had to move in with her parents or my parents or a family member of some kind,
00:27:38.360 | this is normal.
00:27:39.360 | This is how these situations work.
00:27:42.000 | Because I'm dead and I'm gone, she's free to step in and take over the work, take over
00:27:50.440 | the financial responsibility.
00:27:51.840 | She can do that.
00:27:53.080 | And because I'm dead and gone, my expenses have stopped.
00:27:56.000 | She doesn't have to feed me.
00:27:57.640 | She doesn't have to clothe me.
00:27:58.920 | She doesn't have to cart me around.
00:28:00.400 | She doesn't have to have an extra car for me.
00:28:03.400 | Simple.
00:28:04.400 | Now, let's flip it.
00:28:06.440 | Let's say that instead of me being dead, I'm just simply pretty sick.
00:28:13.560 | Well, now what?
00:28:15.040 | Well, now none of those things happens.
00:28:18.840 | I forgot to say my wife could remarry.
00:28:20.920 | She could find someone else and marry somebody else who would be able to help support her
00:28:25.280 | and the children.
00:28:26.280 | Well, if I'm sick, she can't do that.
00:28:32.760 | She's still stuck with me.
00:28:35.160 | My wife and I kind of made an agreement that until death do us part, so she's stuck with
00:28:39.080 | me.
00:28:40.080 | We said in sickness and in health, so she's stuck with me.
00:28:45.760 | What about our living expenses?
00:28:47.160 | Well, it's kind of hard to sell the house when you're dealing with a sick husband.
00:28:51.840 | Kind of hard to move apartments when you've got to figure out how do we take care of this
00:28:56.080 | person's medical care.
00:28:59.120 | There's no income coming in.
00:29:01.560 | Is it possible to get social security disability?
00:29:03.760 | It's possible.
00:29:04.760 | I highly recommend you never, ever plan on getting it.
00:29:09.360 | You've got to be really, really disabled to get it.
00:29:13.160 | You've got to be disabled for a while and there's got to be almost no chance of you're
00:29:18.480 | ever getting better.
00:29:20.040 | I have worked with some people in social security disability claims, people who are without
00:29:25.120 | question utterly entitled to those benefits the way the law is written.
00:29:30.840 | It has been a nightmare to get it.
00:29:34.920 | Guess what?
00:29:36.000 | When you get it, it ain't much, especially if you're young.
00:29:39.240 | A friend of mine that tries to live on about $600 a month to support herself because she
00:29:45.080 | got social security disability, fought it for years to finally get it.
00:29:49.440 | If anyone is disabled, she is disabled.
00:29:53.120 | Very difficult situation.
00:29:55.400 | So let's just assume there's no social security disability payments.
00:29:57.920 | I could get into the technical reasons of why if those of you who want to nitpick me
00:30:02.160 | about that, but just take my word for it.
00:30:04.880 | You've got to be very disabled.
00:30:05.880 | You've got to be totally disabled, unable to do any gainful employment for an expected
00:30:10.840 | period of a very long time.
00:30:15.000 | So what are the options?
00:30:16.120 | If we have no income, how is she going to – she's got to go to work?
00:30:18.960 | Who is going to take care of me?
00:30:19.960 | Who is going to take care of the kids?
00:30:22.760 | Well, family can step in and that's always what happens.
00:30:25.560 | But the point is it's far easier on her if I'm dead and gone than if I'm simply
00:30:30.720 | disabled.
00:30:33.120 | Disability is much more difficult on her because now she goes and gets a job.
00:30:37.560 | Family steps in, takes care of me.
00:30:38.880 | Well, guess what?
00:30:39.880 | She's got to go take a job and then when she comes home, she's got to take care of
00:30:43.320 | me and she's got to take care of kids.
00:30:46.280 | So instead of two kids and a husband to help her with, now she's got two kids and a third
00:30:49.960 | kid, meaning me, who's more work than any of the kids.
00:30:54.840 | Very, very difficult.
00:30:55.840 | So I'd rather have disability insurance than life insurance if I could only choose
00:31:00.040 | one.
00:31:01.040 | What about health insurance?
00:31:03.280 | Well, health insurance is really useful.
00:31:08.200 | And if you have great health insurance, it's possible that that could entitle you to great
00:31:11.600 | medical care.
00:31:13.760 | But you know what?
00:31:14.760 | If you're broke, we've got a whole system of Medicaid that's designed to pay for that.
00:31:20.200 | Is it going to be the best care that you could possibly get?
00:31:24.360 | It's always been a hard question for me to answer.
00:31:26.680 | My experience has been you're going to get care no matter how broke and bankrupt you
00:31:30.800 | are.
00:31:31.800 | And we've decided this is an important program.
00:31:34.360 | The program is there.
00:31:35.360 | It pays for it.
00:31:36.360 | So you're going to get Medicaid even if you don't have any money.
00:31:40.360 | You're going to get medical care if you don't have any health insurance.
00:31:43.720 | Let's say you don't get Medicaid.
00:31:44.840 | Let's say you just pile up a million dollars of medical bills.
00:31:48.080 | There's bankruptcy courts to help you get out of those debts.
00:31:54.800 | Or after you get better, you can work with the creditors.
00:31:57.480 | You can work to negotiate them and you can work to pay them back.
00:32:01.720 | So if you have giant bills, giant medical bills, you can deal with those things.
00:32:07.880 | But you know what's really difficult to deal with?
00:32:11.240 | A landlord.
00:32:12.240 | He's kicking you out of an apartment.
00:32:15.080 | A mortgage company that's foreclosing on your house while you're also dealing with the medical
00:32:20.160 | bills because your income is not just for you.
00:32:26.960 | Your income is also for your family.
00:32:29.180 | You might be in the hospital or you might not be in the hospital.
00:32:32.360 | But if you're not in the hospital, how are you going to pay your rent if you can't work?
00:32:35.240 | You're just trying to recover at home.
00:32:38.520 | So if I had to choose between health insurance and disability insurance, I'll take the disability
00:32:42.280 | payments.
00:32:44.200 | The health insurance I can deal with at a future time.
00:32:46.280 | The health bills and all those things, I can deal with those.
00:32:49.240 | When I'm better or if I'm not better, I can't deal with them.
00:32:52.040 | And I'll say thank you very much to the creditors.
00:32:55.840 | I can't pay you.
00:32:56.840 | What can we do?
00:32:57.840 | And I'll work that out.
00:33:02.160 | But if I have at least $3,000 a month or $2,000 a month or $20,000 a month, whatever the number
00:33:07.760 | is of disability, then I can possibly keep my mortgage paid and keep from getting foreclosed
00:33:12.280 | on.
00:33:13.280 | I can possibly keep some rent coming in.
00:33:14.600 | I can possibly have enough money to buy some groceries.
00:33:17.640 | I could possibly have enough money to keep the car going to be able to maintain some
00:33:21.280 | semblance of normal life.
00:33:22.600 | And the cool thing about disability payments is legally in most states, they're going to
00:33:27.240 | be entitled to protection.
00:33:28.240 | So your creditors are not going to be able to come after disability payments in most
00:33:32.720 | states that I'm aware of.
00:33:34.720 | However, practically, it's pretty easy to evade those who would seek to attach that
00:33:42.240 | money.
00:33:43.240 | If you just have an income, that's a contract between you and the insurance company.
00:33:47.840 | You can get that income and you can pay your bills the same day, the bills that you need
00:33:51.240 | to be able to stay in your house and you can be in good shape.
00:33:55.120 | So I'll take the disability insurance.
00:33:58.880 | What else?
00:33:59.880 | Long-term care insurance?
00:34:00.880 | These usually function and complement.
00:34:03.320 | Disability insurance usually goes away and long-term care insurance kicks in at the end
00:34:06.320 | of life.
00:34:07.320 | But guess what?
00:34:08.320 | If I'm needing long-term care, I'm disabled.
00:34:09.320 | I'm disabled.
00:34:10.320 | So if I need long-term care as a 30-year-old, that's a situation that would pay out under
00:34:17.280 | the context of a long-term care policy or also under a disability policy.
00:34:21.760 | So I truly believe that disability insurance is more important than all of the other insurances.
00:34:28.760 | Now the cool thing about insurance is generally, it's pretty inexpensive.
00:34:33.480 | Disability insurance costs more than term life insurance, usually not nearly as expensive
00:34:39.000 | as health insurance.
00:34:41.280 | It varies depending on how you compare it to long-term care insurance.
00:34:46.280 | It's going to come out to be 1%, 2% or 3% of your income depending on what type of policy
00:34:51.400 | you buy, what policy design constraints you put into it, what type of occupation you have,
00:34:58.000 | safe occupation, not safe occupation, etc.
00:35:03.080 | So it's super, super important.
00:35:05.360 | I hope that's persuasive to you.
00:35:08.440 | That is probably more important than some of the other insurances that you have.
00:35:15.480 | Now does everybody need disability insurance?
00:35:19.440 | My answer, no, absolutely not.
00:35:22.480 | People who are financially independent don't need disability insurance.
00:35:29.040 | If you or your family is not dependent on your income to maintain your lifestyle, you
00:35:34.160 | don't need disability insurance.
00:35:38.400 | You might still choose to have it.
00:35:40.320 | I think there's a compelling argument to be made to have it, especially when you get into
00:35:45.280 | it from the perspective of trying to protect very high incomes.
00:35:49.200 | People who have invested years of work in their education and years of work in establishing
00:35:54.680 | their career to build a very high income usually have an appreciation for the value of that
00:35:59.480 | income.
00:36:01.720 | Usually this comes in with highly compensated physicians, very knowledgeable and very inclined
00:36:10.320 | to have disability insurance, highly compensated professions like attorneys, things like that.
00:36:16.240 | These people are usually open and much more interested in having disability insurance.
00:36:22.360 | For physicians it's generally considered to be mandatory, perhaps because they work with
00:36:26.440 | a lot of sick people, who knows.
00:36:28.320 | But it's a big deal to have it.
00:36:30.480 | But you don't need it if you're financially independent.
00:36:34.020 | So if you are retired or you could retire without any impact to your lifestyle, you
00:36:41.480 | don't need disability insurance.
00:36:46.800 | The rest of us need to think about it.
00:36:49.640 | Now why don't people get disability insurance?
00:36:51.440 | There are a few reasons.
00:36:53.200 | First, many people can't get disability insurance.
00:36:58.160 | They can't get disability insurance because of medical reasons.
00:37:02.320 | They might have had a previous situation that resulted in them being sick in the past.
00:37:09.400 | Disability insurance underwriting can be very challenging.
00:37:11.880 | All kinds of little things can come into play.
00:37:14.640 | I had many, many people declined.
00:37:16.920 | I had many people experience problems in underwriting because they have to be very, very careful.
00:37:23.520 | You have the possibility – the probability of adverse selection against the insurance
00:37:27.840 | company.
00:37:28.840 | So people who have been injured in the past are much more motivated to get the insurance
00:37:33.440 | than those who haven't.
00:37:35.780 | Same problem they face with health insurance.
00:37:37.860 | People who have been sick in the past are the first people to sign up and say, "Yeah,
00:37:41.560 | give me health insurance."
00:37:42.560 | People who are healthy usually don't want to spend the money.
00:37:44.960 | So they got to deal with adverse selection.
00:37:46.760 | It can be difficult for some people to get with a medical history.
00:37:50.280 | It can also be difficult to get with certain occupations.
00:37:55.080 | There are many occupations that are simply not insurable for disability insurance, at
00:38:00.240 | least not by commercial companies.
00:38:04.320 | You have to work really hard sometimes to get certain types of coverage.
00:38:08.920 | Now a knowledgeable insurance broker should be able to shop – if you are looking for
00:38:14.140 | disability insurance, a knowledgeable insurance broker should be able to shop you around to
00:38:17.560 | a bunch of different companies.
00:38:18.920 | What you will find is that there are different companies who specialize in different occupations.
00:38:23.420 | There are some companies that will not accept anybody in this occupation.
00:38:27.980 | But there are other companies that will do a great job in that occupation.
00:38:32.560 | You would be surprised at where these lines fall.
00:38:35.680 | For example, when I was with – the company I was with didn't insure chiropractors,
00:38:43.120 | just flat out refused to accept chiropractors.
00:38:45.560 | So you get into certain medical specialties and these jobs are simply not insurable.
00:38:51.440 | So many people have trouble because of their occupation.
00:38:54.680 | Many people have trouble because of their hobbies, their avocations.
00:38:59.640 | If you're jumping out of airplanes or flying airplanes, things like that, those can result
00:39:04.000 | in difficulty getting disability insurance.
00:39:08.560 | Many people have trouble getting disability insurance because of financial qualifications.
00:39:13.760 | That can be a few things.
00:39:15.520 | First, you have to qualify based upon your income and some people have group benefits,
00:39:20.560 | things like that.
00:39:21.560 | So they are going to deal with what they have at their group.
00:39:24.400 | Many entrepreneurs and self-employed people have a very difficult time getting disability
00:39:28.520 | insurance.
00:39:29.520 | They can't get disability insurance right now, new business.
00:39:34.000 | New business has to – you have to show your earnings record.
00:39:38.760 | One of the challenges that entrepreneurs face and people who are business owners is the
00:39:45.000 | amount of income that they show on their tax return and the amount of income that they
00:39:48.640 | actually experience are usually two different numbers.
00:39:53.160 | The disability insurance underwriter is going to go based upon your profits.
00:39:58.480 | So when we talk about strategies to show a lower income in order to save on taxes, that's
00:40:03.040 | really great when it comes to taxes.
00:40:04.820 | But that hurts you when you go to apply for a mortgage and it hurts you when you go to
00:40:09.000 | apply for disability insurance.
00:40:12.800 | But many times, the reasons people just don't buy disability insurance is because they're
00:40:17.320 | apathetic.
00:40:18.320 | They've already spent and allocated the money to something else.
00:40:21.360 | It's very challenging to get a normal middle class family to – who's not accustomed
00:40:27.120 | to buying disability insurance to happily and eagerly fork over $250 or $300 or $350
00:40:34.360 | a month.
00:40:35.880 | Very challenging from a sales perspective.
00:40:38.640 | Many people, even though they buy everything that I said and they said, "Yeah, I get
00:40:42.160 | it," and you can look at statistics until you're blue in the face.
00:40:44.320 | It doesn't matter.
00:40:45.320 | That's why I just don't even bother going to the numbers.
00:40:47.240 | But you can look at those things until you're blue in the face and it's $300 a month or
00:40:52.560 | it's $200 a month or it's $150 a month.
00:40:56.960 | Then what's often is men.
00:41:00.320 | Men are the worst and I get all these stupid excuses.
00:41:03.720 | The standard two excuses is that men give.
00:41:07.040 | Usually women are much smarter.
00:41:08.040 | In fact, women are much more likely to get – excuse me.
00:41:12.400 | Men are like – yeah.
00:41:13.400 | Women are more likely to get disabled than are men.
00:41:16.640 | Men are less likely to get disabled.
00:41:18.080 | Men die sooner but men are less likely to get disabled than women.
00:41:21.520 | So for women, your disability insurance actually will cost you more than for men.
00:41:27.680 | For men, life insurance costs more than for a woman.
00:41:30.520 | For a woman, disability insurance costs more.
00:41:33.920 | But for men, the standard two things is, "I'll work even though I'm sick."
00:41:37.960 | You heard it every single time.
00:41:39.960 | "I'll work even though I'm sick."
00:41:41.940 | If you're a man and you're listening and you have that consideration, I just ask you,
00:41:45.280 | have you ever been sick and not felt like going to work?
00:41:50.720 | Most of us have.
00:41:53.000 | Sometimes you just can't work.
00:41:54.000 | Sometimes you do your best.
00:41:56.440 | Sometimes you can't work.
00:41:58.320 | You got to acknowledge at least – you would have to at least acknowledge it intellectually,
00:42:03.400 | whether you admit it emotionally or not.
00:42:04.960 | That's up to you.
00:42:05.960 | But you got to at least acknowledge intellectually that it's possible to get in a position
00:42:09.800 | where you're still alive and you're still functional to some degree but you can't
00:42:14.400 | work.
00:42:15.400 | The second thing is usually men will make some motion that involves an imitation of
00:42:21.400 | a cocked gun pointed to their head and they'll say, "This is my solution."
00:42:25.920 | I never had any idea that so many people were suicidal until I started working at the disability
00:42:32.440 | insurance marketplace, which, man, is utterly absurd.
00:42:37.160 | You're going to take the fact that you're disabled and just the fact that you're disabled
00:42:41.920 | means that you can't go on living and you somehow expect that you're disabled but
00:42:48.200 | your wife is going to leave a gun in the drawer next to you?
00:42:50.960 | She's smarter than that, buddy.
00:42:54.920 | You're going to do that to your family?
00:42:57.480 | It's nonsense.
00:42:58.480 | So those are just the two objections that always annoyed me that every single man would
00:43:02.640 | present to me and I – anyway, it just always annoyed me.
00:43:07.080 | But that's the background on disability insurance.
00:43:10.000 | That's my sales pitch to you.
00:43:11.920 | So I urge you to consider it.
00:43:13.600 | I urge you to consider the value of it.
00:43:15.680 | I urge you to consider what you have, what you don't have.
00:43:19.000 | We'll talk more about that in coming episodes.
00:43:21.880 | But I hope that it's somewhat compelling to you to at least look into it, to at least
00:43:28.480 | be open to it, and to at least think about it.
00:43:32.400 | What happens is disability insurance is not sold as aggressively as it should be.
00:43:38.400 | That's why I don't get into a lot of the debates about – people want to get into
00:43:42.360 | debates about what insurance agents should do and what insurance agents shouldn't do.
00:43:46.640 | One of the things that people who comment, the biggest debate is term life insurance
00:43:49.760 | versus whole life insurance.
00:43:51.880 | Often, I want to pipe into that debate.
00:43:55.280 | It's like do you understand why life insurance agents sell whole life insurance?
00:43:59.280 | Because people want to buy it.
00:44:02.660 | When you talk about term life insurance and whole life insurance, people want to buy whole
00:44:07.280 | life insurance because they get their money back.
00:44:10.280 | Oftentimes, these very intelligent financial people who have run all the numbers and run
00:44:14.760 | all the math will go through and say, "Why do people – why are the majority of life
00:44:18.320 | insurance policies sold whole life insurance?"
00:44:20.680 | Because people want to buy it.
00:44:21.680 | They don't want to buy term life insurance with throwing their money away.
00:44:24.600 | The sad thing is that – well, not a sad thing, but the reality is people buy what
00:44:28.480 | they want to buy.
00:44:31.040 | Insurance agents find it easier to sell into a willing marketplace.
00:44:38.200 | But here's what I would beg of you.
00:44:40.880 | First, please consider buying disability insurance if you're a consumer.
00:44:44.480 | If you're a life insurance agent, please work really hard to sell disability insurance.
00:44:51.720 | One reason I never got that involved in the whole life insurance thing is usually if I
00:44:54.720 | work with a young family, the first sale I'm going to make is disability insurance.
00:44:59.160 | I would frankly often keep from talking about life insurance because if I – until the
00:45:04.520 | disability insurance was either sold or rejected, until the prospective client had made a firm
00:45:10.960 | decision yes or no.
00:45:12.760 | I knew that most people at this point are convinced that they're going to buy life
00:45:16.360 | insurance.
00:45:17.560 | Most thinking parents, young parents, they know they need to get life insurance.
00:45:21.040 | They'll go ahead and get some term life insurance.
00:45:23.080 | But I always worked really, really hard to get disability insurance put in place first
00:45:27.280 | because it's more important.
00:45:29.600 | Usually by the time you use up your budget, you look at the amount of dollars that are
00:45:32.480 | available and those dollars get sucked up by disability insurance and a term life insurance
00:45:36.960 | policy.
00:45:37.960 | You don't have any time or money to get on to anything different.
00:45:41.240 | That's the reality.
00:45:43.760 | So I urge you, please be open to it if an insurance agent talks to you about it.
00:45:48.560 | Investigate it if you haven't.
00:45:49.720 | You will find a difficult time finding insurance agents who are experts in this.
00:45:53.520 | That's what set me on this last thing.
00:45:55.720 | Many insurance agents have gotten beat in the face so many times by people saying, "I
00:46:00.520 | don't want that.
00:46:01.520 | I'll just grab the 45 in the drawer next to me and I'll take care of things," that they
00:46:06.360 | give up and they stop pushing through to find out what's right and to push through to what's
00:46:12.320 | right.
00:46:13.320 | I've met so many financial advisors who primarily specialize in investments.
00:46:16.720 | I talk to them about disability insurance.
00:46:18.280 | I can't do it.
00:46:20.480 | It's just too hard.
00:46:21.480 | People don't want to buy it.
00:46:23.360 | So you got to work hard as an insurance agent to do it, to sell disability insurance.
00:46:28.040 | I encourage you, please do it.
00:46:30.280 | If you are a listener who's skeptical about disability insurance, go and find an old seasoned
00:46:37.100 | life insurance agent, somebody who's been in the business for 30 or 40 years and ask
00:46:43.240 | them the number of their clients who have been disabled and who are out on claim or
00:46:48.280 | who've been out on claim for disability versus the number of clients that have died and they've
00:46:53.600 | paid a death claim.
00:46:56.120 | I've done this.
00:46:57.400 | What you find is that many old life insurance agents have a much higher number of their
00:47:05.520 | clients out on disability than death at a premature age.
00:47:11.960 | Now, the numbers on this are hard to parse and I'm specifically avoiding saying them,
00:47:16.560 | but you have a higher probability of being disabled at an early age than you do of dying
00:47:22.200 | at an early age, a much higher probability.
00:47:25.760 | So you've got to focus on that.
00:47:28.320 | The reason the data is hard to parse is simply because everybody dies.
00:47:32.520 | You're guaranteed to die.
00:47:34.660 | You're not guaranteed to be disabled.
00:47:37.000 | But if you look at even your own personal experience in your own circle of contact and
00:47:42.420 | ask yourself how many people have been disabled at an early age versus how many people have
00:47:47.840 | died at an early age, I think you'll find a similar fact pattern emerge.
00:47:52.040 | That's my sales pitch for you on disability insurance.
00:47:54.920 | We'll get into more details in future shows.
00:47:56.560 | I hope this is useful to you.
00:47:57.840 | I hope this is encouraging to you.
00:47:59.960 | If you agree with me or disagree with me, I'd be welcome to your comments.
00:48:02.960 | I have had lots of people that disagree with me on which insurance I think is most important.
00:48:09.340 | But I'm telling you, I'll take it every time.
00:48:13.240 | I'll take disability insurance every time over any of the rest of them because the rest
00:48:18.420 | of the insurances protect somebody else.
00:48:22.360 | Life insurance protects my family.
00:48:23.680 | I love them.
00:48:24.680 | I want them to be protected.
00:48:26.080 | Health insurance protects the hospital and the doctors and to some extent me.
00:48:31.000 | Disability insurance is income and money in my pocket.
00:48:34.360 | That protects me.
00:48:36.360 | Really feel strongly about it.
00:48:39.000 | That's it for my show today.
00:48:40.480 | Two quick things as we go.
00:48:41.480 | I've had great success with many of you scheduling phone calls for personal consultations with
00:48:47.320 | me.
00:48:48.320 | I just announced that in the last couple of shows.
00:48:49.800 | If you are interested in speaking to me or consulting with me on something specific,
00:48:52.600 | please go to RadicalPersonalFinance.com/PhoneCall.
00:48:56.120 | That service is now available to you.
00:48:58.800 | RadicalPersonalFinance.com/PhoneCall.
00:49:01.840 | Things like this would be a great point of discussion.
00:49:03.680 | I don't have an insurance license so I won't tell you buy this one or don't buy this one.
00:49:07.360 | If you want to talk about whether you need it or not, I was on a consulting call on Friday
00:49:12.640 | and the listener said, "Do I need disability insurance?"
00:49:15.320 | I said, "Yes.
00:49:16.320 | Here's why."
00:49:17.320 | Or excuse me, I said, "No."
00:49:18.320 | In that case, I said, "Yes, you need life insurance.
00:49:20.400 | No, you don't need disability insurance because of some other extenuating circumstances."
00:49:24.240 | That's a great conversation if you want to get on the phone with me and talk about it.
00:49:28.160 | If you want to get on the phone with me, you can put me on the phone with you and your
00:49:31.800 | insurance agent or somebody that you're working with.
00:49:33.720 | If you just want a second opinion, an unbiased third party who's knowledgeable and experienced
00:49:38.480 | in your corner, we can do that.
00:49:40.600 | If you want to have a consultation, I've done a lot of career counseling in the last few
00:49:43.760 | days.
00:49:44.760 | We've talked a lot about proper job selection, investment plans, how to invest for financial
00:49:49.640 | independence, RadicalPersonalFinance.com/PhoneCall.
00:49:50.640 | Also, thank you to those of you who support the show and I would wish that many, many
00:49:56.520 | more hundreds of you would consider doing it.
00:49:58.160 | If you gain value from the content that I present to you here, please consider becoming
00:50:01.720 | a patron of the show.
00:50:02.960 | Details on that program at RadicalPersonalFinance.com/Patron.
00:50:05.360 | A buck a month would be helpful.
00:50:09.400 | Ten bucks a month, 14 bucks a month, RadicalPersonalFinance.com/Patron.
00:50:14.400 | Thank you for listening.
00:50:14.920 | [BLANK_AUDIO]