Your Biggest Asset Isn’t Your House or Your Car. It’s Your Income.

Let me tell you something that absolutely blows my mind? Most people know exactly how much coverage they have on their car. They know their deductible, they know what their house is worth, and they know that their wedding ring is insured. Some people even have insurance on their pets!

But ask someone if they have a plan in place if they couldn’t work for a year because of an illness or injury, and most people have no idea. And that’s something I think we should talk about more.

For most people, their biggest financial asset isn’t their house, their car, or even their investment account. It’s their ability to earn an income.

Think about it. If you’re making $80,000 a year and plan to work for another 30 years, that’s $2.4 million of future income before even considering raises or increases in your earning potential. If you’re making $100,000 a year, that’s $3 million.

Yet we often spend more time thinking about protecting a vehicle that’s worth $40,000 than we do protecting the thing that could potentially generate millions of dollars over our lifetime. And I’m not saying you shouldn’t insure your car. Obviously, insure your car. What I’m saying is that we’ve been conditioned to think about protecting the things we own, but we sometimes forget about protecting the thing that pays for all of those things.

Your income is what pays the mortgage. It’s what pays for groceries, childcare, utilities, and all of the everyday expenses that come with life. It’s what allows you to contribute to your retirement accounts, take vacations, support your family, and build the future you’re working toward.

So what would happen if that income suddenly stopped because of an accident, an illness, or something completely unexpected?

Would your financial plan still work? Would the bills still get paid? Would your family be okay?

Nobody likes thinking about worst-case scenarios, but having a plan in place before something happens can make a significant difference. Depending on your situation, that could mean looking at disability insurance, emergency savings, or other strategies designed to protect your income if you’re unable to work.

These are the conversations I have with people every day. Not because I like talking about worst-case scenarios, but because life happens whether we’re prepared for it or not.

Your biggest asset isn’t what you own. It’s your ability to earn. And if your income is what makes your entire financial plan possible, protecting that income deserves just as much attention as everything else you’re insuring.