This post is sponsored by Asteya.
We work hard to establish ourselves professionally—and we should do everything we can to protect ourselves and our earnings.
As we build our careers and advocate for ourselves and our talents, our salaries grow alongside. We champion ourselves to make sure our hard work is recognized—and that we are compensated accordingly.
We work to build a career of accomplishment to be proud of, so shouldn’t we protect it?
To begin, here are some compelling stats around disability and working:
- 90% of disabilities in the US are due to illness, not injury.
- Disability is the cause of nearly 50% of all home foreclosures.
- You are 3.5x more likely to need income insurance than you are to need life insurance.
- 1 in 4 people will be unable to work due to wellness complications before retirement.
- Women have a 54% chance of becoming seriously ill or injured during their working years.
So, what happens when your health or wellbeing is put in jeopardy? How do you maintain your income when complications prevent you from working?
Income insurance is the insurance you might not be aware of—and it’s the insurance that future-proofs your financial wellbeing.
In the unfortunate event that you should find yourself unable to work, income insurance exists so that you can stop worrying about how you’re going to keep paying for your bills and focus on healing.
Income insurance is the key to keeping your finances and quality of life secure. We created this article in partnership with Asteya to empower your future—no matter what.
What is Income Insurance?
If you’re asking yourself, “What is income insurance?” you’re not alone. Sure, we all know about health insurance and dental insurance. We readily cackle at a funny home and automobile insurance commercial.
So why isn’t anybody talking about income insurance?
After all, isn’t all insurance really meant to protect your income in the event of an accident, a natural event, or illness?
Income insurance exists to protect your direct source of income. It enables you to continue paying your expenses in the event of injury or illness.
These are expenses like your car lease, your groceries, your childcare, and don’t forget your other insurance premiums!
With an affordable, minimal monthly payment, you can protect your income and your financial security for a safe future.
The Difference Between Income Insurance and Disability Insurance
When we think of types of insurance, what usually comes to mind is automobile, health, life, dental, and disability—but income insurance is rarely on that list.
This brings us to our next question; what is the difference between disability insurance and income insurance?
The short answer? They’re actually the same thing!
Both disability insurance and income insurance exist in order to protect you in the event of injury or illness. Asteya is changing the term to better describe what it actually covers—your income
You can regard income insurance as a product intended to protect your paycheck. Rather than focusing on the reason for income loss (ie. “disability”), income insurance exists to help you proactively protect your lifestyle.
Why It’s Important to Protect Your Paycheck
We work hard.
We carve out a space for ourselves to make a difference through our work. Our income is a reflection of all that we do; of all that we have accomplished and will accomplish.
One injury or prolonged illness is a huge threat to everything you built for yourself and your loved ones. Income insurance exists to protect that.
Unlike life insurance, which pays a lump sum of cash to your beneficiary when you pass away, income insurance protects your earnings so that you may focus on healing.
During the ongoing 2020-2021 COVID-19 pandemic, Americans lost a net of 10 million total jobs.
The situation is worse for women of color. As many Women of Color work in jobs deemed essential, they had no choice but to risk their own health and the health of their families to provide vital financial support.
Before the pandemic even reared its ugly head, economic advocacy group Prosperity Now found that 40 percent of Americans were one paycheck away from poverty.
As we continue to impatiently wait for policymakers to address persistent inequities, there are few things we can do to protect ourselves at a minimal cost. Income insurance is one of those things.
How Much Does Income Insurance Cost?
But how much does it cost?
Good news! Income insurance is going to be one of your lowest-cost insurance opportunities. You can create a free, personalized quote in seconds by entering your employment status, date of birth, benefit amount, and zip code.
Your income insurance premium will be based on your annual income or the extra income you’re looking to protect.
For example, if you’re a 35-year-old woman who runs a side business that earns you an extra income of $50,000 in Los Angeles, California, you can expect an estimated monthly premium of $7 - $10 for your income insurance.
The monthly price will depend on the annual income you are protecting. See for yourself and create your own quote in minutes.
Is Income Insurance Worth it?
The short answer is yes—especially if you are self-employed, earning substantial extra income, or if you’re an entrepreneur.
If you’re one of the 44 million Americans who decided to become self-employed, congratulations, you’re doing it!
Being your own boss comes with perks and drawbacks. Yes, you can skip out to take a 2pm yoga class, but you also have to deal with nitty-gritty aspects of running your business like paying taxes (yuck), forecasting budgets, and insurance.
Then, of course, you’re also solely responsible for generating all income for yourself and your business.
With an increasing percentage of employees deciding to grow their freelance and independent careers, it’s crucial to safeguard your earnings. Nobody wants to think about becoming sick or unable to work. By putting an income insurance plan into play, you don’t need to.
Income Insurance is About Access, Too
In addition to that, many existing options on the market are complicated (hello, endless insurance jargon!), expensive, and almost impossible to navigate.
More often than not, those who have income insurance (or disability insurance) got it through their corporate employers or financial advisors. So, what about those of us who have access to neither?
This accessibility issue is exactly why Asteya created an affordable, flexible, and modern form of income insurance that is accessible to everyone, regardless of their gender, profession, or income level.
How Does Income Insurance Work?
Let’s dive into how income insurance works—without any confusing jargon.
Like other insurance policies, income insurance requires a monthly payment. With an individual income insurance policy, you’ll be protected for up to 60-80% of your typical after-tax income in the event of a health or wellness condition.
While some employers provide group insurance disability coverage, these plans hinge on your employment at that company. With Asteya, you can get supplemental coverage or stand-alone coverage that’s not tied to an employer.
If you find yourself unable to work due to a disability, Asteya’s Income Insurance can cover a portion of your income.
What Does Income Insurance Cover?
Let’s get into specifics. What does income insurance actually cover? What doesn’t fall under the umbrella of income insurance protection? By determining how it can (or cannot!) be used, you can make the correct decision for your health and your future.
What Income Insurance Can Cover
- Mental health issues
- Cancer
- Injuries (ie. broken bones, fractures)
- Heart issues
- Disorders that limit movement
What Income Insurance Does Not Cover
- Pre-existing conditions (Angry face, we know.)
Other Important Questions About Income Insurance
While we created this article as an introduction to income insurance, we recognize that there are always oodles of questions when it comes to insurance. Asteya understands that, too. That’s why they have this exhaustive FAQ page.
If you’re looking to navigate quickly to a few big questions, here they are:
- Is income insurance tax deductible?
- Do I need individual coverage if I’m already covered through work?
- How much income insurance do I need?
- What’s the difference between employer-sponsored and individual income insurance?
- What is group income insurance?
Finally, head over to Asteya to quickly determine what income insurance policy is right for you.
