With all due respect to the people who have suffered losses in the recent spate of storms across the South and the sort of cool Mayhem commercials on TV, people have the wrong focus.

Everyone is concerned about their house burning down, yet becoming disabled and unable to work is several times more likely from an actuarial point of view. Yet everyone with a house buys home owners insurance.

Car insurance is mandatory in many states, and people will put collision coverage on a car valued at $20k. Yet for a late 20’s individual the probability of disability is roughly the same as having an accident that totals your car, and the value of that income stream that is lost will be several times as great as the replacement cost of the vehicle.

But fires and crashes are sexy in a train wreck gotta watch the accident way. Disability isn’t. Yet Disability Insurance is the single most overlooked component in a financial plan. Think of it this way: if you get hurt or injured and have no money coming in the door, your financial plan is useless because there are no finances TO plan.