When most people think about insuring their valuables, they think about their car, their home, or maybe an expensive piece of jewelry. What many people fail to realize is that all of those things are purchased from your income. Your income is typically your largest asset.
Think about how much you earn in a year, and think about what that would be over a lifetime. If an individual earns $50,000 per year and he or she is 25 years old, in a 40-year period, he or she will earn $2 million, and that’s without any sort of inflation. If you factor in modest inflation, the number could easily be twice as high. We don’t hesitate to insure our homes, our cars and other valuable possessions. So why would you not insure something that is infinitely more valuable than all those things?