In past posts I have primarily focused on ways to grow your small business no matter what products or services you offer. Today will be slightly different as we focus on the power of a proper insurance plan that can save you and your family if something where to prevent you from being able to work.
What is Disability Insurance and do I really need it?
Just like car insurance, nobody likes to pay insurance policies but when you need it, it’s a life saver for you and your family. Think of it this way, if you have spent a lot of money on education for your occupation like a surgeon, technician or physical therapist or any other occupation that requires highly skilled work with your hands, you need some form of disability insurance. If you get hurt and are no longer able to work that means that you don’t have a source of income, unless you have a policy.
A Good Example: Disability Insurance for a Physician
If you are a physician then I don’t need to remind you how much time and money you have sacrificed to get where you are today. Whether you are just starting your practice or you are a seasoned vet, your health is essential to your income because if you lose the ability to service patients with your specialty then your income takes a huge hit.
Lets cover the 3 Most Important Things to Consider
When choosing a disability insurance policy you might feel overwhelmed by the number of choices you have. When researching the topic I wanted to get info from a very knowledgeable professional. After looking at many options I decided to reach out to The Disability Doc, a specialists in the areas of income continuation, asset protection, and lifestyle preservation. Make sure to check out the video below where you can listen to Chris explain these important things to consider.
Definition of Disability
This is probably the most important out of the 3 because it directly dictates what kind of coverage you will receive if needed. Chris recommends getting a definition of disability that is own occupation and specialty specific.
Guaranteed Renewable and NonCancellable
This is important because it guarantees that you have a plan that won’t change. It prevents the insurance company from going in and changing your policy terms over time. A reminder for those offered disability insurance through a group or employer, these are typically not guaranteed so they are not your most secure option.
Don’t Wait to Choose a Plan
This is not meant to make you feel pressured into buying a plan without research. This point is being made because you want to lock-in a plan at the youngest age and best health possible. Just like a life insurance policy, a younger person in good health is always going to get a better policy than someone who waited and now has some nagging health issues which make you a bigger risk for insurance companies.
Disability Insurance is of great importance to everyone and especially those in highly-skilled high-income occupations. Try to view it as car insurance as being required by your state. It’s an expense that could save you from losing the things you love and your basic everyday essentials like your home, car, food and water. Don’t put this off but at the same time don’t be impulsive. Get several quotes from different carries and make an educated decision based on what is best for you.