The Income Society

Each year at tax time, Parade Magazine features an article called “What People Earn.” It stimulates readership because people are interested in their income in comparison to others.

The article provides informational bits useful in thinking about the potential customers for disability insurance. The lowest income reported was a Black Jack dealer in Minot, North Dakota who earns $10,000 dollars a year. The highest in this survey was Peyton Manning, quarterback of the Indianapolis Colts at $42,000,000. If we separate the actors, athletes, physicians and attorneys from the list we find the income average of the 80 or so people named in the survey to be $76,072. Actors and Athletes included in the article averaged $17,000,000 in 2004.

This insight into America’s incomes establishes America to be made up of a mighty differential between low and high incomes, but it also establishes that we are an Income Society. We are people who have not learned their ancestral traits necessary in the Hunting and Gathering Society. We have not continued the rules of success in an agricultural society. We are the victims of the Industrial Revolution. We are earners of money with which we buy the components of our life. We are absolutely an Income Society.

Being absolutely dependent on income to live on, to save from, and to create a retirement income is a very fragile position to occupy. Some deterrents to an ever-increasing income stream are the result of man-made problems. People can find answers, to man made problems. The economic interrupters over which people have ABSOLUTELY NO CONTROL are:

DEAD DEATH          and           LIVING DEATH

And of those two economic deaths, Living Death is the worst, economically according to Soloman S. Huebner, PhD., CLU founder of the American College, for the victim is still here as a continuing consumer without being a producer.

Peyton Manning earns $42,000,000 per year.
Does such an earner need DISABILITY INSURANCE? Yes!
Does he want it? Yes.

If he owned a $42,000,000 building paying him a profit month after month and year after year would he insure it against loss? Undoubtedly, because it is logical and affordable.

Should a $300,000 per year earner buy disability insurance? Absolutely!
How much?
All he/she can get!

The U.S. Bureau of Labor Statistics recommends a cash flow of 65% of earned income is necessary to prevent falling behind financially.

$300,000 = $25,000 monthly gross at 65% = $16,250
Less possible IDI or Group LTD in force         $10,000
Needs Supplemental High Limit Disability        $6,250