Your Greatest Asset Is Not Your House. It Is Your Ability to Earn an Income.

Quick question: what's your single biggest financial asset?

Most people say their house. Some say their retirement account.

Both are probably wrong.

If you're under 50 and working, your biggest asset is your ability to earn a paycheck for the next 30 years. That's worth more than any house or 401(k) you own.

And unlike your house, this asset can vanish in an afternoon.

Here's what agents don't lead with:

• A 30-year-old has about a 1 in 4 chance of becoming disabled before retirement
• The average disability lasts over 2.5 years
• Nearly half of all mortgage foreclosures happen because of a disability
• Social Security disability? About 65% of first-time applicants get denied

Most people think they're covered.

You see "short-term disability" on your pay stub and figure you're good. But employer plans are usually pretty weak:

• They only cover 40% to 60% of your income
• The benefits are taxable if your employer paid the premiums
• Coverage ends the day you leave your job
• "Own occupation" protection — where you get paid if you can't do YOUR specific job — is rare

Individual disability insurance fills the gap.

The good policies have three magic phrases:

• Own occupation — you're disabled if you can't do YOUR job, not just any job
• Non-cancelable — they can't jack up your rates or drop you as long as you pay
• Guaranteed renewable — your policy renews no matter what happens to your health

When to buy: Your late 20s or early 30s, while you're healthy and rates are cheap. A 30-year-old can lock in rates for life. Wait until your 40s and you'll pay way more — plus you'll have more health stuff to disclose.

Disability insurance isn't exciting. Nobody dreams of owning it. But if your paycheck pays your bills, it might be the most important protection you'll ever buy.