How to Create an Income Protection Strategy

Imagine you’re sitting down for your annual performance review.

Your boss looks up from the paper and says, “You’ve done outstanding work this year. Your leadership, your impact, your consistency—it’s all been noticed.”

You nod, encouraged. Then comes the blow:

“But unfortunately, we’re going to have to cut your pay by 40%.”

Stunned, you lean back in your chair. The mind reels. Forty percent? That’s not just belt-tightening. That’s mortgage-shaking.

Still, your reaction kicks in: Update the résumé. Call a few contacts. Schedule interviews. You’re healthy, experienced, and in demand. You can fix this.

Now... imagine the story plays out a little differently.

You walk into that same office. Same review. Same glowing remarks.

But this time, your boss smiles and says, “We’re giving you a substantial raise. You’ve earned it.”

You're elated. This is the affirmation—and the reward—you’ve worked so hard for.

On your drive home, you call your wife to share the news. She cries joyful tears. You talk about what this could mean for your family—maybe it’s time for that cabin you’ve dreamed about, or finally giving more to missions, or putting extra into the kids’ college funds.

And then it happens.

You never saw the jackknifed truck sprawled across all three lanes. You weren’t reckless. You weren’t speeding. But in one horrific moment, everything changed.

You weren’t one of the fatalities the news reported later that night—but you may have wished you were.

You survived.

Paralyzed from the neck down.

The Pay Raise That Never Had a Chance to Pay Off

You can’t return to work. And now that generous new raise? It's gone.

In its place is group long-term disability insurance, which provides only 60% of your former salary, and even that amount is taxable. Because your employer paid the premiums, Uncle Sam wants his cut of your benefit.

Your 401(k) contribution? Gone.
The company match? Gone.
The ability to grow your retirement nest egg? Gone.

Your wife, who left her career to raise your children, now has no choice but to return to work. You need in-home care, someone to help with basic needs. That costs money—money that used to go to family vacations, giving, or paying down the mortgage.

You can’t go to church easily anymore. No accessible van. No ramp. Friends don’t visit as much—they don’t know what to say. The loneliness settles in. Your world shrinks to the size of your living room.

What started as the best day of your career has become the most painful chapter of your life.

And all because there wasn’t a plan in place to protect the very thing that fueled your lifestyle, your future, and your purpose: your income.

How to Create an Income Protection Strategy for Your Earning Power

If you ask most successful professionals what their most significant asset is, they’ll likely point to their investment portfolio, home equity, or business ownership. But in reality, their most valuable asset, especially in their working years, is their ability to earn.

Your income is the engine of your entire financial vehicle. It funds your savings, supports your family, pays your debts, enables your generosity, and sustains your lifestyle.

Over a career, your income often represents millions of dollars. Yet it’s also the least protected asset most people have.

At Woolman Financial Group, we believe protecting your income isn’t just a financial decision; it’s a stewardship decision. Because when your income supports your values, losing it affects far more than your balance sheet. It disrupts your family, your friendships, your purpose, and your ability to serve.

Why You Need, and Should Want, an Income Protection Strategy

Think about your total lifetime earnings. For a high-income medical professional or corporate executive, that number could exceed $5 million, $10 million, or more.

But earned income isn’t guaranteed. It hinges on your ability to work, lead, and deliver value. Illness, injury, or even burnout can sideline you faster than you think.

That’s what makes earned income so vulnerable. And that’s what makes protection essential.

The Gaps in Most Income Protection Approaches

Many professionals assume they’re covered through their employer. But here’s the hard truth:

• Group disability coverage is often capped at just 60% of your base salary, up to a certain dollar amount.

• It rarely, is any, includes bonuses, commissions, or incentive pay.

• Benefits are typically taxable, reducing your actual take-home income even further.

• And the definition of “disability” can be so narrow that you may not qualify when you need it most.

Worse still, group plans often don’t coordinate well with private solutions. They’re bundled in your benefits packet, quickly checked off, and never revisited—until it’s too late.

And if you’re a high-income earner, the gap between what you need and what you actually receive can be devastating.

Using Income Protection Insurance

That’s why long-term disability insurance—properly structured and personalized—is one of the most critical tools in your financial toolkit.

It replaces a portion of your income if you’re unable to work due to illness or injury. And when coordinated with your overall plan, it can do so in a tax-efficient and reliable way.

Look for:

• Occupation-specific coverage (also called "own-occupation") that protects your ability to perform your unique role—not just “any job.”

• Tax-free benefit structures when premiums are paid with after-tax dollars.

• Supplemental private coverage that fills the gap between employer group plans and your actual income needs.

This isn’t about fear. It’s about clarity. It’s about stewardship. And it’s about protecting the people and purposes your income supports.

Building a Resilient Income Protection Plan Beyond Insurance

Protecting your income isn’t just about a policy; it’s about a strategy.

A proper income protection strategy includes:

• Liquidity reserves to weather short-term disruptions.

• Diversified income sources, such as rental properties, side businesses, or passive investments.

• Properly structured whole life insurance, offering both protection and accessible capital.

The goal? Build margin. Create resilience. And ensure you’re not depending on a single stream to support your entire financial life.

When your plan includes multiple levers, you gain options—and options create peace.

Why Income Protection Is More Than Money

This isn’t just about replacing a paycheck.

It’s about preserving the calling God placed on your life. It’s about ensuring your family is cared for. It’s about continuing to give generously, serve faithfully, and lead confidently—even when life doesn’t go according to plan.

Losing your income doesn’t just tighten your budget; it can shake your foundation.

That’s why income protection is not a burden—it’s a blessing.

It’s not just what you earn. It’s what you protect that determines the legacy you leave.

Your Next Step

If you’ve never taken a serious look at how well your income is protected—or if you’re relying on a generic group plan—it’s time for clarity.

Download the Cash Flow Strategy Framework
Let us help you build an income protection strategy that’s aligned with your values, your vision, and your God-given calling.

Because it’s not about what might happen.

It’s about being ready if it does.

This material is for informational and educational purposes only and is not intended as individualized financial advice. Please consult a qualified advisor before making financial decisions.